The Following Is Allison Corporation's Contribution Format Income Statement for Last

question 80

Multiple Choice

The following is Allison Corporation's contribution format income statement for last month:

The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.
-What is the company's break-even sales in dollars?

• A)$0
• B)$640,000
• C)$700,000
• D)$400,000

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Definitions:

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operational performance.

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.

Financial Capital

Financial capital involves funds provided by lenders and investors to businesses to purchase real capital equipment for producing goods/services.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, offering insight into its financial position.