Bonda, Inc

question 110

Multiple Choice

Bonda, Inc. sells its product for $90. It has a variable cost ratio of 50% and total fixed costs of $14,000. What is the break-even point in sales dollars?

• A) $3,600
• B) $7,000
• C) $14,000
• D) $28,000

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Definitions:

Demand Note

A loan or debt instrument that is repayable on demand at the choice of the lender at any time.

Lump Sum

A single payment made at a particular time, as opposed to multiple payments over time.

Installment Loan

is a type of loan that is repaid over time with a set number of scheduled payments, typically monthly.

Outstanding Principal

The remaining amount of money borrowed on a loan or bond that has not yet been repaid.