When Fixed Costs Are $140 000 and Variable Costs Are

question 67

Multiple Choice

When fixed costs are $140 000 and variable costs are 30% of the selling price,then break-even sales will be:

• A)$500 000.
• B)$200 000.
• C)$140 000.
• D)indeterminable.

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Definitions:

Basic Earnings

The net income divided by the weighted average number of shares outstanding, representing a company's earnings per share without any adjustments.

Common Shares

Equity securities that represent ownership interests in a corporation, providing voting rights and potential dividends to shareholders.

Preferred Shares

A class of ownership in a corporation with a fixed dividend, that has priority over common shares in the distribution of dividends and assets.

SEC Requires

Mandatory rules and requirements established by the Securities and Exchange Commission that publicly traded companies must follow to protect investors and ensure the integrity of the securities markets.