Honeysuckle Manufacturing Has the Following Data What Dollar Sales Volume Does Honeysuckle Need to Break Even

question 29

Multiple Choice

Honeysuckle Manufacturing has the following data:
$$\begin{array} { | l | r | l | } \hline \text { Selling Price } & \$ 60 & \\\text { Variable manufacturing cost } & \$ 33 & \\\hline \text { Fixed manufacturing cost } & \$ 250,000 & \begin{array} { l } \text { per } \\\text { month }\end{array} \\\hline \begin{array} { l } \text { Variable selling \& administrative } \\\text { costs }\end{array} & \$ 9 & \\\hline \text { Fixed selling \& administrative costs } & \$ 120,000 & \begin{array} { l } \text { per } \\\text { month }\end{array} \\\hline\end{array}$$
What dollar sales volume does Honeysuckle need to break even?

• A) $822,222.
• B) $833,333.
• C) $900,000.
• D) $1,233,333.

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Definitions:

Debt Worthy

A term indicating an individual or organization's capability and reliability in repaying borrowed money, often assessed by creditworthiness.

Expansion Capital

Refers to the funds provided to mature companies looking to expand operations, enter new markets, or acquire assets without changing control of the business.

Long-Term Borrowings

Loans or debt obligations with repayment schedules extending beyond one year, used to finance more permanent or significant investments.

Working Capital

The measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.