Sales Total $200,000 When Variable Costs Total $150,000 and Fixed

question 52

Multiple Choice

Sales total $200,000 when variable costs total $150,000 and fixed costs total $30,000.The break-even point in sales dollars is

• A)$200,000.
• B)$120,000.
• C)$40,000.
• D)$30,000.
• E)$180,000.

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Definitions:

EOQ

Economic Order Quantity (EOQ) is an inventory management formula that determines the ideal order size that minimizes the total costs of holding and ordering inventory.

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to ordering and receiving goods.

Inventory Value

The reported value of a company's goods or materials that have not yet been sold, calculated based on the cost of acquisition or manufacturing.

Cash Balances

Cash Balances are the amount of cash or cash equivalents that a company or an individual holds.