Farmers' Industries Has Fixed Costs of $600000 and Variable Costs

question 66

Multiple Choice

Farmers' Industries has fixed costs of $600000 and variable costs are 60% of sales. How much will Farmers report as sales when its net income equals $60000?

• A) $1650000
• B) $1100000
• C) $1560000
• D) $396000

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Definitions:

Emergent Strategies

Emergent strategies develop over time as managers learn from and respond to experience.

Managerial Learning Curve

The process by which managers gain experiential knowledge that improves their decision-making, efficiency, and effectiveness over time.

Unrelated Diversification

A business strategy where a company expands into industries or markets that are not related to its existing business activities.

Acquiring New Businesses

The process by which a company purchases or takes over other businesses to expand its operations, market reach, or product offerings.