A Company Has Fixed Costs of $90,000

question 31

Multiple Choice

A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales?

• A) $60,000.
• B) $128,571.
• C) $180,000.
• D) $210,000.
• E) $300,000.

Understand the process for calculating interest on partners' capital balances.

Recognize the tax classification for various organization types similar to partnerships.

Comprehend the dissolution of a partnership and its impact.

Understand the concept and importance of the accounting period in financial reporting.

---

Definitions:

Issued Capital

Represents the total value of a company’s shares that have been issued to shareholders.

Translation of Financial Statements

The process of converting the financial statements of a company into another currency, often necessary for consolidation purposes or for financial reporting in companies that operate in multiple countries.

Foreign Operations

Business activities or entities that a company conducts or owns in countries other than where its main operations are located.

Objectives

The specific, measurable goals that an organization or individual aims to achieve within a certain timeframe.