The Corner Market Has Fixed Costs of $1,600,depreciation of $1,200,a

question 31

Multiple Choice

The Corner Market has fixed costs of $1,600,depreciation of $1,200,a tax rate of 35%,and a cost of capital of 12%.Variable costs represent 67% of sales.What minimum level of sales must the market obtain to avoid a net loss on its income statement?

• A) $8,484.85
• B) $6,666.67
• C) $7,033.33
• D) $7,867.67

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Definitions:

Psychiatric Approach

is a method in medicine focusing on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.

Preparedness

A concept in psychology that suggests organisms are innately predisposed to form certain associations or learn particular types of behaviors more easily.

Phobic Stimuli

Objects or situations that provoke an irrational and excessive fear response.

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that are capable of locomotion and responsive to their environment.