Behemoth Back Packs, Inc

question 192

Multiple Choice

Behemoth Back Packs, Inc. finds that the cost to make x back packs is C = 90x + 6396, while the revenue produced from them is R = 137x (C and R are in dollars) . What is the smallest whole Number of back packs, x, that must be sold for the company to show a profit?

• A)29
• B)1,451,892
• C)300,612
• D)137

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to find the net cash from operating activities.

Inventory

The raw materials, work-in-progress products, and finished goods that a company holds with the intent to sell or produce goods.

Operating Activities

Business activities related directly to the operation of the company, such as selling products, manufacturing, and providing services.

Loss on Sale

The financial loss incurred when the selling price of an asset is less than its carrying amount.