Use the Following Information for Questions
MacCloud Industries Has

question 36

Multiple Choice

Use the following information for questions
MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: $\begin{array}{lll}&\text { Standard Division }&\text { Premium Division } & \text { Total }\\\hline\text { Sales } & \$ 400,000 & \$ 600,000&\$1,000,000 \\\text { Variable costs } & 280,000 & 360,000 \\\text { Contribution margin } & \$ 120,000 & \$ 240,000\\\text { Total fixed costs }&&&\$300,000\end{array}$
-What is the break-even point in dollars?

• A) $108,000
• B) $833,333
• C) $857,143
• D) $882,353

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Definitions:

Cultural Scripts

Normative guidelines for behavior and understanding in various social contexts that are learned and shared within a cultural or social group.

Cultural Context

The societal, ethnic, and cultural background that influences an individual's behavior, perceptions, and interactions with others.

Compliance

The act of conforming, submitting, or adapting one's behavior in accordance with others' wishes, rules, or regulations.

Lowballing

A phenomenon in which after agreeing to an offer, people find it hard to break that commitment even if they later learn of some extra cost to the deal.