In Its First Year, Joe's Startup Company Had Revenues of $125,000

question 52

Multiple Choice

In its first year, Joe's Startup Company had revenues of $125,000 and cost of goods sold of $81,250, which was the only variable cost. Depreciation was $20,000. Cash fixed costs were $100,000, consisting of $5,000 in financing costs, $50,000 in administrative expenses, and $45,000 in marketing expenses. What is the survival breakeven revenues?

• A)$342,857
• B)$285,714
• C)$271,429
• D)$184,615

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Definitions:

Brady-

A prefix used in medical terms to denote slowness, as in bradycardia, which means slow heart rate.

Slow

Characterized by a low speed; not fast or quick.

Insomnia

A sleep disorder characterized by difficulties in falling asleep, staying asleep, or obtaining restorative sleep.

In-

A prefix used to indicate negation or absence.