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:

Nationalized

Refers to industries or assets that have been transferred from private to government ownership.

Best Interest

A principle that guides decisions by prioritizing the benefits and welfare of those affected over other considerations.

Society

A community of individuals living together and interacting under shared norms, values, and institutions.

Profit Maximizes

The technique a firm uses to determine the most profitable price and quantity of production.