Maxfield Company Has Fixed Costs of $200,000 and Variable Costs

question 209

Multiple Choice

Maxfield Company has fixed costs of $200,000 and variable costs are 60% of sales. How much will Maxfield Company report as sales when its net income equals $20,000?

• A) $550,000
• B) $366,667
• C) $520,000
• D) $132,000

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Definitions:

Functionalists

Sociologists who focus on how societal components function together to maintain order, stability, and equilibrium in society.

Greater Rewards

Refers to the higher benefits or returns that are anticipated or received from taking greater risks or investing significant effort.

Training

The process of teaching or learning specific skills or behaviors, typically to improve performance in a given activity or job.

Lumpenproletariat

A term used in Marxist theory to describe the underclass excluded from the class structure of capitalist societies, including the unemployed and criminals.