If You Had Fixed Costs of $100,000 and Variable Costs

question 103

Multiple Choice

If you had fixed costs of $100,000 and variable costs of $10,000,in the long run you would stay in business if total revenue were equal to,or greater than

• A)$0.
• B)$10,000.
• C)$100,000.
• D)$110,000.

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Definitions:

Monthly Interest Rate

The percentage of interest that is charged or earned on a principal amount on a monthly basis.

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Annual Percentage Rate

A measure of the cost of borrowing, including interest and other fees, represented as a yearly rate and providing a comprehensive view of the loan cost.

Terms Of Sale

The conditions agreed upon by the buyer and seller covering payment, delivery, and the transfer of ownership of goods or services.