A Company Has Sales of $87,500 at the Break-Even Point

question 23

Multiple Choice

A company has sales of $87,500 at the break-even point and fixed costs are $35,000.Assuming cost behaviour does not change if sales increase by $20,000 how much will operating income will increase by?

• A) $20,000.00.
• B) $12,000.00.
• C) $8,000.00.
• D) $4,000.00.

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Definitions:

Hereditary Factors

Genetic influences on individual characteristics, behaviors, and psychological traits.

Unconscious Forces

Mental processes that are not directly accessible to consciousness but influence judgments, feelings, or behavior.

Normal Children

Children who exhibit typical developmental milestones and behaviors according to their cultural and societal standards.

Identity Crises

A period of uncertainty and confusion in which a person's sense of identity becomes insecure, typically due to a change in their expected aims or role in society.