Topper Corporation Has 60,000 Shares of $1 Par Value Common

question 30

Multiple Choice

Topper Corporation has 60,000 shares of $1 par value common stock and 16,000 shares of cumulative 7%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year. If Topper declares a $1.95 per share dividend this year, what will be the total amount they must pay their shareholders?

• A) $117,000.
• B) $341,000.
• C) $327,000.
• D) $177,000.

---

Definitions:

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in zero profit.

Partial Moves

Actions or strategies that are implemented to a limited extent, often as a trial or preliminary step before full execution.

Margin of Safety

The difference between actual or projected sales and the break-even sales, indicating the risk cushion for not incurring losses.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.