If Fixed Costs Are $200 000 and Variable Costs Are

question 21

Multiple Choice

If fixed costs are $200 000 and variable costs are 60% of the selling price,the break-even point in sales dollars is:

• A) $800 000
• B) $333 333
• C) $200 000
• D) $500 000

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Definitions:

Revenue

The revenue earned from regular business activities, factoring in discounts and allowances for returned goods.

Budget

An itemized forecast of an entity’s income and expenses expected for a specific period, usually showing how much money it intends to earn, spend, and save.

Donations

Voluntary transfers of resources, such as money or goods, to individuals or organizations without the expectation of direct return or compensation.

Spending Variances

Differences between the budgeted or standard cost amounts and the actual costs incurred.