Kaplan, Inc

question 47

Multiple Choice

Kaplan, Inc.produces flash drives for computers, which it sells for $20 each.The variable cost to make each flash drive is $13.During April, 700 drives were sold.Fixed costs for April were $2 per unit for a total of $1,400 for the month.How much is the monthly break-even level of sales in dollars for Kaplan?

• A)$200
• B)$4,000
• C)$14,000
• D)$8,400

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Definitions:

FVE Method

Refers to the Fair Value Evaluation method, a technique for assessing an asset's worth at its current market value.

Consolidated Net Income

The total amount of net income earned by a parent company and its subsidiaries, after intercompany transactions have been eliminated.

Equity Method

An accounting technique used by a company to record its investment in another company where it has significant influence but not full control, usually through the ownership of 20-50% of the voting stock.

Investment Revenue

Income earned from various forms of investments like stocks, bonds, and real estate properties.