In Its First Year,Joe's Start-Up Company Had Revenues of $125,000

question 2

Multiple Choice

In its first year,Joe's Start-Up Company had revenues of $125,000 and cost of goods sold of $81,250,which was the only variable cost.Depreciation was $20,000,and cash costs were $5,000 in financing costs,admin expenses of $50,000,and $45,000 in marketing expenses - all of which were fixed.What is the survival breakeven revenue?

• A)$342,857
• B)$285,714
• C)$271,429
• D)$184,615
• E)$153,846

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