Better Bonds
Better Bonds Provided the Following Data -Refer to EPiano

question 61

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to ePiano. What is the overall sales revenue at break-even?

• A) $387,200
• B) $778,800
• C) $968,000
• D) $1,288,700

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Definitions:

Internal Rate

The interest rate at which the net present value of all the cash flows from an investment or project is zero.

Sustainable Growth

The rate at which a company can grow its sales, earnings, and dividends without borrowing additional funds or issuing new equity, often considered a measure of a company's long-term financial health.

Debt-Equity Ratio

A ratio demonstrating the relative amounts of shareholders' equity versus debt financing in a corporation's asset base.

Fixed Assets

Tangible assets that are held by an entity for long-term use and are not expected to be converted into cash in the short term.