A Firm Has Fixed Costs of $1

question 76

Multiple Choice

A firm has fixed costs of $1.2 million and depreciation of $1 million. At a sales level of $3.6 million, the variable costs of $2.304 million. What is the accounting break-even level of sales?

• A) $5.23 million
• B) $3.44 million
• C) $6.11 million
• D)$4.87 million

---

Definitions:

Military Precision

Describes tasks or operations carried out with extreme accuracy, efficiency, and discipline, often associated with the meticulousness of military operations.

Organic

In the context of organizations, describing a flexible, adaptive structure that is more decentralized and encourages collaboration and connectivity among members.

Mechanistic

Describes organizations or systems that are highly structured and operate like machines, focusing on routinization and hierarchical authority.

Burns and Stalker

Burns and Stalker were social scientists known for their work on the theory of management and organizational structure, specifically the distinction between mechanistic and organic systems.