Farmers' Industries Has Fixed Costs of $400,000 and Variable Costs

question 17

Multiple Choice

Farmers' Industries has fixed costs of $400,000 and variable costs are 60% of sales.How much will Farmers report as sales when its net income equals $40,000?

• A)$1,100,000
• B)$733,333
• C)$1,040,000
• D)$264,000

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Definitions:

Per Capita

A statistical measure that represents the average per person, commonly used to compare economic indicators such as income or GDP among different populations.

Real GDP

Measures the value of all goods and services produced by an economy, adjusted for inflation, to reflect the actual economic output.

National Income

The total value of all goods and services produced by a country's economy over a specific period, after adjustments for income from foreign investments and payments to other countries.

Corporate Profits

The excess of revenues over expenses for corporations, indicating the financial health and performance of companies.