July Sales for Amherst Arcade Equal $100,000, Variable Costs Equal

question 21

Multiple Choice

July sales for Amherst Arcade equal $100,000, variable costs equal $60,000 and fixed costs, including depreciation of $20,000, total $60,000.Which of the following is correct?

• A)Amherst Arcade broke even with respect to net income.
• B)Amherst Arcade broke even with respect to cash.
• C)Amherst Arcade fell $20,000 short of cash break-even.
• D)Amherst Arcade broke even with a $20,000 surplus.

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