Koby CoHas Sales of $200,000 with Variable Expenses of $150,000,fixed Expenses

question 14

Multiple Choice

Koby Co.has sales of $200,000 with variable expenses of $150,000,fixed expenses of $60,000,and a net loss of $10,000.How much would Koby have to sell in order to achieve an operating income of 10% of sales?

• A) $375,000.
• B) $451,000.
• C) $431,000.
• D) $400,000.Sales = 60,000/(.25 - .10)= $400,000

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Definitions:

Unionized Facility

A workplace where a labor union represents the interests of the employees and engages in collective bargaining with management for contracts covering wages, benefits, and working conditions.

Union Representation

The act of a union serving as the official body that negotiates and interacts with employers on behalf of its members.

National Labor Relations Act

A foundational US law enacted in 1935 that protects the rights of employees to organize, bargain collectively, and engage in other union activities.

Contract Clause

A specific provision or section within a contract that stipulates the obligations, rights, and responsibilities of the parties involved.