The Following Data Pertain to Last Month's Operations: the Break-Even

question 109

Multiple Choice

The following data pertain to last month's operations: The break-even point in dollar sales is:

• A)$18,000
• B)$6,000
• C)$11,250
• D)$7,500

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Definitions:

Financial Forecasting

The process of estimating or predicting how a business will perform in the future through its financial statements.

FA/Sales Ratio

The Fixed Asset to Sales Ratio compares a company's total amount of fixed assets to its sales revenue, indicating how efficiently the company uses its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits for a specific period.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.