Sales Total $200,000 When Variable Costs Total $150,000 and Fixed

question 28

Multiple Choice

Sales total $200,000 when variable costs total $150,000 and fixed costs total $30,000. The breakeven point in sales dollars is:

• A)$200,000
• B)$120,000
• C)$ 40,000
• D)$ 30,000

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Definitions:

Benefits-Received Principle

A theory of fairness holding that taxpayers should contribute to government (in the form of taxes) in proportion to the benefits they receive from public expenditures.

Public Goods

Items whose consumption is not depleted by an additional consumer and from which individuals cannot be excluded from using.

Tax Revenue

Revenue earned by governments through the application of taxes.

After-Tax Distribution

The amount of income distributed to shareholders after taxes have been accounted for.