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

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Definitions:

Constituents

Individuals or groups with a vested interest in the outcomes of an organization's decisions, policies, and activities.

Cocoa-Bean Processor

A facility or machine that grinds cocoa beans into cocoa powder, essential in chocolate production.

Industrial Market

A market segment consisting of businesses that purchase goods and services for use in production, manufacturing, or operations.

Government Unit

An organizational entity within the government structure, which could include departments, agencies, or other sub-divisions responsible for specific tasks.