A Firm with 60 Percent of Sales Going to Variable

question 96

Multiple Choice

A firm with 60 percent of sales going to variable costs,$1.5 million fixed costs,and $500,000 depreciation would show what accounting profit with sales of $3 million? Ignore taxes.

• A) Zero loss
• B) $370,000 loss
• C) $666,667 Loss
• D) $800,000 loss

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Definitions:

British Securities

Stocks, bonds, or other financial instruments issued by companies or the government in the United Kingdom.

Total Return

The overall earnings on an investment, including both capital gains and income, over a specific time period.

Dividends

A repeat - Financial distributions made by companies to their shareholders, typically from the firm's earnings.

Spot Exchange Rate

The current market price for exchanging one currency for another for immediate delivery.