If Fixed Costs Are $750,000 and Variable Costs Are 60

question 184

Multiple Choice

If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point in sales dollars?

• A) $1,250,000
• B) $450,000
• C) $1,875,000
• D) $300,000

---

Definitions:

Bank Statement

A document issued by a bank detailing the transactions in an account over a specific period, showing deposits, withdrawals, and balances.

Postdated Check

A check written with a future date, delaying the ability of the recipient to cash or deposit it until that date.

Dishonored

Refers to a financial instrument, such as a check or promissory note, that has been refused payment when presented.

Landlord

A person who owns real property and who rents or leases it to someone else. Also called lessor.