A Company Has Fixed Costs of $90,000

question 58

Multiple Choice

A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales?

• A) $128,571.
• B) $180,000.
• C) $60,000.
• D) $210,000.
• E) $300,000.

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Definitions:

White Matter

Tissue in the brain and spinal cord made up of nerve fibers, which is responsible for transmitting signals between different areas of the central nervous system.

Myelinated Axons

Axons that are covered by a fatty sheath called myelin, which increases the speed of electrical impulses along nerve cells.

Cell Bodies

The part of a neuron that contains the nucleus and most of the cytoplasm and organelles, responsible for the cell's metabolic activities.

Dendrites

Extensions of a neuron that receive signals from other neurons and conduct them toward the cell body.