-Please Refer to the Income Statement for VGA Associates Below $\quad$

question 3

Multiple Choice

-Please refer to the income statement for VGA Associates below.Assuming that cost of goods sold are variable and operating expenses are fixed,what was VGA Associates' breakeven sales volume in 2014?
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ VGA Associates
$\quad$ $\quad$ $\quad$ Income statement for 2014
$\begin{array}{lr}\hline \text { Sales } & \$ 200,000 \\\text { Cost of goods sold } & 150,000 \\ \text { Gross profit } & 50,000 \\\text { Operating expenses } & 20,000 \\\text { Operating income } & 30,000 \\\text { Interest expense } & 5,000 \\\text { Pre-tax income } & 25,000 \\\text { Taxes } & 5,000 \\\text { Net income } & \$ 20,000 \\\hline\end{array}$

• A) $20,000
• B) $80,000
• C) $150,000
• D) $180,000
• E) None of the above.

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