Sales Total $400,000 When Variable Costs Total $300,000 and Fixed

question 137

Multiple Choice

Sales total $400,000 when variable costs total $300,000 and fixed costs total $50,000.The breakeven point in sales dollars is ________.

• A) $200,000
• B) $120,000
• C) $170,000
• D) $210,000

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Contributed Capital

Funds that shareholders provide to a company in exchange for shares of stock, representing the equity investment in the company.

Equity

The amount of money that would be returned to shareholders if all of the assets were liquidated and all the company's debts were paid off.