Variable Cost for Light

question 3

Multiple Choice

Variable cost for Light.com's fluorescent tubes is $12.50, the tubes are sold over the internet to businesses and organizations for $20.00 each. Fixed costs are $7,500,000. $500,000 in depreciation expense is included in fixed costs. What is the cash break-even quantity for the fluorescent tubes?

• A) 933,333
• B) 1,000,000
• C) 375,000
• D) 1,066,667

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Definitions:

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