Information for Select Team Inc$\begin{array}{ll}
\text { Sales } & \$ 700,000 \
\text { Variable costs } & \$ 100,000 \
\text { Fixed costs } & \$ 200,000
\end{array}$

Question

Examlex · Accepted Answer

The Answer is A. ($700,000 − $100,000)/$700,000 = 85.7% (rounded)
$200,000/85.7% = $233,372 (rounded)

B. ($700,000 − $100,000)/$700,000 = 85.7% (rounded)
($200,000 + $100,000)/0.857 = $350,058 (rounded)

Information for Select Team Inc $\begin{array}{ll}\text { Sales } & \$ 700,000 \\\text { Variable costs } & \$ 100,000 \\\text { Fixed costs } & \$ 200,000\end{array}$

Definitions:

Information for Select Team Inc Sales $700,000 Variable costs $100,000 Fixed costs $200,000\begin{array}{ll}\text { Sales } & \$ 700,000 \\\text { Variable costs } & \$ 100,000 \\\text { Fixed costs } & \$ 200,000\end{array} Sales Variable costs Fixed costs ​$700,000$100,000$200,000​

Definitions:

Information for Select Team Inc $\begin{array}{ll}\text { Sales } & \$ 700,000 \\\text { Variable costs } & \$ 100,000 \\\text { Fixed costs } & \$ 200,000\end{array}$