A Company with a Cost-Volume-Profit Structure of $50X = $30X

question 84

Multiple Choice

A company with a cost-volume-profit structure of $50X = $30X + $20,000 will earn a 20% return on revenues when it sells:

• A) 1,000 units
• B) 2,000 units
• C) 1,500 units
• D) 3,000 units

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Definitions:

Credit Memo

A paper provided by the seller to the buyer that decreases the amount the buyer must pay to the seller, as per a previously issued invoice.

Note Receivable

A written promise for the payment of a specified amount of money, by a debtor to the lender, with interest, at a future date.

Journalize

The process of recording financial transactions in a journal, which is the first step in the accounting cycle.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and correct.