Use the Following Information for Questions
MacCloud Industries Has

question 36

Multiple Choice

Use the following information for questions
MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: $\begin{array}{lll}&\text { Standard Division }&\text { Premium Division } & \text { Total }\\\hline\text { Sales } & \$ 400,000 & \$ 600,000&\$1,000,000 \\\text { Variable costs } & 280,000 & 360,000 \\\text { Contribution margin } & \$ 120,000 & \$ 240,000\\\text { Total fixed costs }&&&\$300,000\end{array}$
-What is the break-even point in dollars?

• A) $108,000
• B) $833,333
• C) $857,143
• D) $882,353

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Definitions:

Centralized Firms

Organizations that maintain decision-making authority at a central point, typically at the headquarters or the top management team.

Variable Costs

Expenses that fluctuate in direct proportion to changes in the level of production or service activity.

Sales Commission

A payment made to salespersons, often calculated as a percentage of the sales they generate.

Overtime Charges

Additional wages paid to employees for hours worked beyond the standard workweek.