Montoya Manufacturing Has Fixed Costs of $3000000 and Variable Costs

question 47

Multiple Choice

Montoya Manufacturing has fixed costs of $3000000 and variable costs are 40% of sales. What are the required sales if Montoya desires net income of $300000?

• A) $5500000
• B) $5000000
• C) $8250000
• D) $7500000

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Definitions:

Salivate

The secretion of saliva from the salivary glands in the mouth, often in anticipation of food or in response to certain stimuli.

Learned Response

A reaction developed as a result of experience, often through the process of conditioning in response to a specific environment or stimulus.

Stimulus Control

The process by which behaviors are modified by the presence or absence of certain stimuli.

Classical Conditioning

An educational method where associations are made between a naturally occurring stimulus and an environmental one, resulting in a conditioned reaction.