Montoya Manufacturing Has Fixed Costs of $3000000 and Variable Costs

question 47

Multiple Choice

Montoya Manufacturing has fixed costs of $3000000 and variable costs are 40% of sales. What are the required sales if Montoya desires net income of $300000?

• A) $5500000
• B) $5000000
• C) $8250000
• D) $7500000

Understand the concept of "creative destruction" and its significance in economic progress.

Understand the concept of price discrimination and its conditions.

Identify factors influencing a firm's decision to engage in price discrimination.

Recognize how price discrimination affects consumer prices based on demand elasticity.

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Definitions:

Reporting Cheating

The act of informing authorities about violations of academic or professional integrity.

Corporate Crime

Illegal acts committed by a company or individuals acting on its behalf, often to increase profit or market dominance.

Prevent

means to take action in advance to stop something undesirable from happening.

Family Influence

The impact that family members have on each other's attitudes, beliefs, and behaviors, often shaping personal development and decision-making.