Abbott Company Sells Desks at $480 Per Desk

question 82

Multiple Choice

Abbott Company sells desks at $480 per desk.The variable costs are $372 per desk.Total fixed costs for the period are $456,840.The break-even volume in dollars is ________.

• A) $456,840
• B) $589,471
• C) $1,573,560
• D) $2,030,400

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Definitions:

Investment

Allocation of resources, usually money, in expectation of a future return or profit.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money, or what a lender earns on an investment, over a specific period.

Loan

A sum of money that is lent and is due to be repaid along with interest.