Calculate the Break-Even Level of Sales, Assuming: $1

question 44

Multiple Choice

Calculate the break-even level of sales, assuming: $1.4 million fixed costs, $400,000 depreciation expense, and variable costs-to-sales ratio of 65 percent.(use the values in dollar)

• A)$2,769,231
• B)$2,857,143
• C)$4,000,000
• D)$5,142,857

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Definitions:

Refund

Money returned to a purchaser in response to a dissatisfaction with goods or services, or cancellation of a service.

Sales Talk

Persuasive conversations or pitches aimed at promoting and selling a product or service.

Odometer

A device used in vehicles to measure and display the total distance the vehicle has traveled.

Rescind

To revoke, cancel, or repeal a contract, agreement, or law.