Scott Company's Variable Expenses Are 72% of Sales

question 11

Multiple Choice

Scott Company's variable expenses are 72% of sales.The company's break-even point in sales is $2,450,000.If sales are $60,000 below the break-even point,what operating loss would the company report?

• A) $43,200.
• B) $60,000.
• C) $16,800.
• D) Cannot be determined from the data given.

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Definitions:

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