Market Sales Had $1,200,000 in Sales Last Month

question 19

Multiple Choice

Market Sales had $1,200,000 in sales last month. The variable cost ratio was 60% and operating profits were $80,000.
-What is Market's break-even sales volume?

• A) $800,000.
• B) $1,000,000.
• C) $1,200,000.
• D) $2,000,000.

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Definitions:

Boyle's Law

A gas law stating that the pressure of a given mass of an ideal gas is inversely proportional to its volume at a constant temperature.

Proportional

Proportional describes a relationship between two quantities where their ratio remains constant.

Compressed

The state of being pressed into less space or condensed under pressure.

New Pressure

A term referring to the stress or urgency of a situation, or in a scientific context, the change in the force exerted by a fluid per unit area.