Koby CoHas Sales of $200,000 with Variable Expenses of $150,000,fixed Expenses

question 15

Multiple Choice

Koby Co.has sales of $200,000 with variable expenses of $150,000,fixed expenses of $60,000,and a net loss of $10,000.How much would Koby have to sell in order to achieve a net income of 10% of sales?

• A) $375,000.
• B) $400,000.
• C) $431,000.
• D) $451,000.

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Definitions:

Equilibrium Quantity

The level of goods or services offered that equals the quantity consumers are willing to buy at the equilibrium price in the market.

Tax Revenue

The financial benefits governments realize from taxation.

Doodads

A nonspecific term often used to refer to small, miscellaneous items or gadgets.

Producer Surplus

The difference between the amount a producer is willing to accept for a good versus what they actually receive, often due to market prices.