True Fruit,Inc

question 82

Multiple Choice

True Fruit,Inc.sells frozen raspberry fruit bars for $2.50 each.The variable cost per bar is $1.35.Total fixed costs are $25,645.The breakeven point in units is:

• A)10,258
• B)18,996
• C)22,300
• D)25,260

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Times Interest Earned Ratio

The times interest earned ratio is a financial metric that measures a company's ability to meet its debt obligations based on its current earnings before interest and taxes (EBIT).

Default in Payment

Occurs when a borrower fails to make a loan payment on time as agreed upon in the loan agreement.

Gross Profit Rate

The percentage difference between a company's net sales and the cost of goods sold, indicating the efficiency of sales generation.