Find the "Survival Revenues" SR), Also Known as the EBDAT

question 12

Multiple Choice

Find the "survival revenues" SR) , also known as the EBDAT breakeven) based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.

• A) $85,714
• B) $100,000
• C) $116,667
• D) $200,000
• E) $300,000

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product or service for which all sellers offer essentially the same good or service.

Marginal Revenue

The additional income received from selling one more unit of a good or service, used to analyze and optimize profit and pricing strategies.

Economic Profits

Profits exceeding the total costs of resources used, including both explicit and implicit costs.

Opportunity Costs

The financial loss associated with overlooking the alternative that is considered second-best when making a choice.