How Many Total Dollars of Sales Must BAC Company Sell

question 122

Multiple Choice

How many total dollars of sales must BAC Company sell to break even if the selling price per unit is $8.50, variable costs are $4.00 per unit, and fixed costs are $9,000?

• A) $4,000
• B) $8,500
• C) $9,000
• D) $17,000

---

Definitions:

Dividend

A part of a company's profits distributed to its shareholders, typically every three months.

Required Return

The minimum expected rate of return on an investment necessary to compensate for the risk of the investment.

Beta

A measurement of the volatility of a stock or portfolio compared to the market as a whole.

Constant Rate

A fixed percentage or value used in calculations that does not change over the period in question.