A Firm Has Fixed Operating Costs of $150,000,total Sales of $1,500,000,and

question 110

Multiple Choice

A firm has fixed operating costs of $150,000,total sales of $1,500,000,and total variable costs of $1,275,000.The firm's operating breakeven point in dollars is

• A)$150,000
• B)$176,471
• C)$1,000,000
• D)$1,425,000

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Definitions:

Straight Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Income

The total profit or earnings after all expenses and taxes have been deducted from revenue.

Manufacturing Overhead

Indirect costs associated with manufacturing that are not directly allocable to specific units produced, including maintenance, supplies, and depreciation.