Aero, Increquires Sales of $2,000,000 to Cover Its Fixed Costs of of $400,000

question 119

Multiple Choice

Aero, Inc.requires sales of $2,000,000 to cover its fixed costs of $400,000 and to earn net income of $500,000.What percent are variable costs of sales?

• A)25%
• B)55%
• C)20%
• D)45%

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Definitions:

Novel Appearance

A unique or new look, design, or aesthetic quality that distinguishes an object or entity from others.

Registered Design

A legal protection for the aesthetic design or appearance of a product, recorded and recognized by official government bodies.

Manufacturer

A person or company that makes goods for sale, especially on a large scale or using industrial processes.

Infringement

The action of breaking the terms of a law, agreement, or violation of a right.