Assume That Sales Are Predicted to Be $3,750, the Expected

question 164

Multiple Choice

Assume that sales are predicted to be $3,750, the expected contribution margin is $1,500, and a net loss of $250 is anticipated. The break-even point in sales dollars is:

• A) $2,500.
• B) $1,750.
• C) $4,375.
• D) $4,250.
• E) $4,000.

---

Definitions:

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to compensate the policyholder for loss caused by specific events.

Declaratory Judgment Action

A legal procedure wherein the court determines the rights of parties without ordering any specific action or awarding damages.

Subrogation Action

A legal action where an insurer seeks to recover the amount of an insurance claim paid to the insured from the party responsible for causing the loss.

Indemnity Action

A legal action seeking compensation for damages or loss from another party as recompense for harm suffered.