If Fixed Costs Are $850,000 and Variable Costs Are 60

question 16

Multiple Choice

If fixed costs are $850,000 and variable costs are 60% of sales, what is the break-even point (dollars) ?

• A) $2,125,000
• B) $340,000
• C) $3,400,000
• D) $1,416,666

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Definitions:

Economic Efficiency

A situation where resources are allocated in the most effective way possible, maximizing the potential for meeting needs and wants.

Poverty

A condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.

Low Incomes

Earnings that are below average or sufficient levels, potentially leading to poverty.

Youthful Inexperienced Workers

Young individuals entering the labor market with limited or no professional experience.