A Firm with Constant Variable Costs Has a Survival Revenue

question 37

Multiple Choice

A firm with constant variable costs has a survival revenue breakeven of $375,000. This year it had $250,000 in sales, $100,000 of which was a fixed cost. What are the firm's cash fixed costs?

• A) $150,000
• B) $225,000
• C) $625,000
• D) $937,500

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Definitions:

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often involving contributions from both employers and employees.

Investment Earnings

Income generated from investing capital, including dividends, interest, and capital gains.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Retirement Income

The funds or revenue that an individual receives after retiring from active employment, often derived from savings, investments, pensions, or social security benefits.