A Firm Operated at 80% of Capacity for the Past

question 2

Multiple Choice

A firm operated at 80% of capacity for the past year, during which fixed costs were $330,000, variable costs were 70% of sales, and sales were $1,000,000. Operating profit (loss) was

• A) $140,000
• B) $(30,000)
• C) $370,000
• D) $670,000

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Definitions:

Losing a Client

The process or event where a business or individual loses a customer or client, typically resulting in a loss of revenue and/or relational capital.

Arbitrator Negotiation

A negotiation process where a neutral third party helps resolve a dispute by making a decision that is binding for all involved parties.

Unfounded Complaint

A customer complaint that lacks a valid basis or evidence, often requiring careful handling to maintain customer satisfaction.