A Firm Has Fixed Costs of $1

question 83

Multiple Choice

A firm has fixed costs of $1.2 million and depreciation of $1 million.Variable costs are 64% of sales.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

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Definitions:

Pleasant Events

Activities or experiences that induce a state of enjoyment, happiness, or satisfaction.

Unpleasant Events

Incidents or occurrences that cause discomfort, distress, or unhappiness.

Partial Reinforcement

One of several reinforcement schedules in which not every correct response is reinforced.

Resistant to Extinction

Refers to the persistence of learned behaviors or responses after the reinforcement has been eliminated.