A Firm with 60% of Sales Going to Variable Costs,$1

question 89

Multiple Choice

A firm with 60% 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:

Cold Canvassing

The process of approaching potential customers or clients directly, without prior contact, to offer products, services, or information.

Telephone Consumer Protection Act

A United States federal law enacted in 1991 designed to restrict telemarketing calls, the use of automated telephone equipment, and the sending of unsolicited faxes and texts.

Cold Calling

A technique in sales where sales reps make unsolicited calls to potential customers, who have had no prior contact with the salesperson.

Personal Selling Process

A series of steps undertaken by sales professionals to identify potential buyers, communicate benefits, and persuade them to make a purchase.