Sharpie Company Has Variable Costs of 75% of Total Revenues

question 63

Multiple Choice

Sharpie Company has variable costs of 75% of total revenues and fixed costs of $40 million per year.What is the break-even point in dollars?

• A) $40 million
• B) $53.33 million
• C) $100 million
• D) $160 million

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Definitions:

Declaratory Judgment

A court judgment that determines the rights of parties without ordering any specific action or awarding damages.

Trademark

A distinctive word, name, symbol, device, or combination thereof, which enables consumers to identify favored products or services and which may find protection under state or federal law.

Court's Judgment

The final decision made by a judge or court in a legal case, which may order a party to pay a sum of money, to perform a specific act, or to refrain from doing something.

Moot

A matter or topic that is debatable or disputed but has no practical significance or relevance to the current situation.