Fletcher Company Has Three Products with the Following Characteristics Fixed Costs = $30,000 Per Month

question 69

Multiple Choice

Fletcher Company has three products with the following characteristics:
$\begin{array} { | l | r | r | r | } \hline & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \begin{array} { l } \text { Monthly sales in } \\\text { dollars }\end{array} & \$ 60,000 & \$ 80,000 & \$ 100,000 \\\hline \begin{array} { l } \text { Contribution margin } \\\text { ratio }\end{array} & 20 \% & 40 \% & 16 \% \\\hline\end{array}$ Fixed Costs = $30,000 per month.


-The breakeven point in sales dollars is closest to:

• A) $137,500.
• B) $40,000.
• C) $120,000.
• D) $60,000.

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Definitions:

Core Values Assessment

An evaluative process to determine the fundamental beliefs that drive behaviors and decision-making within an individual or organization.

Operating Objectives

Short-term targets or goals that an organization seeks to meet as part of its daily operations, often specific and measurable.

Adaptive Organisation

An organization that is capable of adjusting and evolving its strategies, structures, and processes in response to changes in the environment.

High-quality Goods

Products that meet or exceed predetermined standards of excellence, including durability, usability, and performance.