Aero Inc Requires Sales of $2000000 to Cover Its Fixed Costs

question 212

Multiple Choice

Aero Inc. requires sales of $2000000 to cover its fixed costs of $600000 and to earn net income of $500000. What percent are variable costs of sales?

• A) 25%
• B) 45%
• C) 30%
• D) 55%

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Definitions:

Debt Issue

The act of a company raising money through the sale of bonds or other fixed-income securities.

Tax Rate

The percentage at which an individual or corporation is taxed. The tax rate may vary based on income level, type of income, or other factors.

IOS

Stands for Input/Output System or alternatively, iOS, Apple Inc.'s mobile operating system used for its iPhones and iPads, depending on context.

IRRs

The Internal Rate of Return is a financial measurement utilized to assess the projected profitability of future investments.