Clean Company Sells Its Product for $80

question 173

Multiple Choice

Clean Company sells its product for $80. In addition, it has a variable cost ratio of 60% and total fixed costs of $8,000. What is the break-even point in sales dollars for Baker Company?

• A) $4,800
• B) $32,000
• C) $20,000
• D) $8,000

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Definitions:

Muscular Contractions

The process of muscle fibers shortening and lengthening to produce movement or maintain posture.

Incisors

The front teeth in mammals, typically characterized by their sharp edges for cutting food.

Complex Carbohydrate

Carbohydrates consisting of long chains of monosaccharide units bound together, offering energy and fiber.

Sucrose

A disaccharide composed of glucose and fructose, commonly known as table sugar and used as a sweetener and preservative.