Miguel Manufacturing Has Fixed Costs of $2,500,000 and Variable Costs

question 112

Multiple Choice

Miguel Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales.What are the required sales if Montoya desires an operating income of $250,000?

• A)$4,583,333
• B)$4,166,667
• C)$6,875,000
• D)$6,250,000

---

Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, where an association is made between a behavior and a consequence for that behavior.

Observational Learning

A learning process where individuals change their behaviors or acquire new information by watching the actions of others.

Classical Conditioning

The learning method that occurs through repeated pairings of two stimuli, resulting in a response that at first is triggered by the second stimulus but in time is triggered by the first stimulus.

Operant Conditioning

The act of learning in which the intensity of a behavior is transformed by the application of rewards or punishments.