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:

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders.

Declaration

An official statement or announcement made by a person or an organization.

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified amount of another asset, typically shares of the issuing company.

Diluted Earnings

Net income available to common shareholders, adjusted for the effects of all potential dilutive securities.