A Firm with Constant Variable Costs Has a Survival Revenue

question 37

Multiple Choice

A firm with constant variable costs has a survival revenue breakeven of $375,000. This year it had $250,000 in sales, $100,000 of which was a fixed cost. What are the firm's cash fixed costs?

• A) $150,000
• B) $225,000
• C) $625,000
• D) $937,500

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