Miguel Manufacturing Has Fixed Costs of $2,500,000 and Variable Costs

question 64

Multiple Choice

Miguel Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales.What are the required sales if Montoya desires an operating income of $250,000?

• A)$4,583,333
• B)$4,166,667
• C)$6,875,000
• D)$6,250,000

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Definitions:

Trade Balance

The financial discrepancy between exports and imports in a country's trade of goods and services.

Net Capital Outflow

Refers to the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners. It's a measure of the international financial flow from a country.

Foreign Assets

Investments or interests in property, businesses, and financial products located in countries other than the investor's home country.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners over a certain period.