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

Understand the principles of compound interest and how it applies to loans and investments.

Calculate the total amount paid over the life of a loan including interest.

Determine monthly withdrawal amounts from retirement accounts based on expected returns and time.

Estimate future value of regular investments over time with compound interest.

---

Definitions:

Percentage of Ad Spend Method

A budgeting technique for advertising in which the budget is set based on a fixed percentage of the company’s sales or projected sales, making it a simple and commonly used method for allocating advertising funds.

Competitive Parity Method

A budgeting method where a company sets its advertising and marketing budget based on the spending of its competitors.

Objective and Task Method

A budgeting method in marketing where objectives are set first, and then tasks and activities needed to achieve these objectives are determined and budgeted for.

Centralized

A system or process where control or decision-making is consolidated in a single point or location.