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:

Hemoglobin

A protein in red blood cells responsible for transporting oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.

Megakaryocytes

Large bone marrow cells responsible for the production of blood thrombocytes (platelets), which are critical for blood clotting.

Neutrophils

A type of white blood cell that is part of the immune system, helping fight infection by ingesting microorganisms.

Myeloblasts

Immature bone marrow cells that are precursors to granulocytes, a type of white blood cell crucial for fighting infection.