Dorian Company Produces and Sells a Single Product

question 106

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.


-What is the break-even point in sales dollars?

• A) $48,000.
• B) $72,000.
• C) $28,800.
• D) $0.

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Definitions:

Authoritarian

Pertaining to a system of government or leadership style that emphasizes strict obedience to authority at the expense of personal freedom.

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are lenient and often only step in when there is a serious problem.

Authoritative

Describes a leadership style characterized by clear expectations and guidance, while also being supportive and responsive to subordinates' needs.

Authoritarian

A leadership or governance style characterized by strict adherence to authority and rules, often at the expense of personal freedom.