Sonoma Winery Has Fixed Costs of $10,000 Per Year

question 21

Multiple Choice

Sonoma Winery has fixed costs of $10,000 per year. Its warehouse sells wine with variable costs of 80% of its unit selling price. How much in sales does Sonoma need to break even per year?

• A) $8,000
• B) $2,000
• C) $12,500
• D) $50,000

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Definitions:

Supply Assurance

The strategic approach and practices put in place by a company to ensure consistent and reliable delivery of essential goods and services, minimizing disruption in the supply chain.

Stringent Quality

Strict and precise standards and procedures to ensure high quality of products, services, or processes.

Small Quantity

A lesser amount or volume of goods or materials, often contrasting with bulk or large-scale purchases.

Core Competency

A defining strength or advantage of a company, crucial to its success and difficult for competitors to replicate.