The Following Information Pertains to Syl Co

question 73

Multiple Choice

The following information pertains to Syl Co.: What is Syl's break-even point in sales dollars? (CPA adapted)

• A)$200,000.
• B)$160,000.
• C)$50,000.
• D)$40,000.

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Definitions:

Debt Percentage

The proportion of a company's total liabilities to its total assets, indicating the degree of leverage used by the company.

Pretax Profits

Earnings of a company before income tax expense has been deducted.

Borrowing Rate

The interest rate charged by a lender to a borrower for the use of borrowed money, often expressed as an annual percentage.

ROA

Return on Assets, an indicator of how profitable a company is relative to its total assets, showing how efficient management is at using assets to generate earnings.