A Small Business Calculates That Its Monthly Fixed Costs Are

question 94

Short Answer

A small business calculates that its monthly fixed costs are $3,200. If the business calculates it contribution rate to be 0.42, what level of monthly sales must be generated in order to break even?

---

Definitions:

Graduation Gift

An item or sum of money given to someone to celebrate the completion of their graduation.

Talon

In finance, a talon is a coupon on a bearer bond that allows the holder to collect future unattached coupons when they become due.

Judicial Sale

The sale of property authorized by a court, often as a result of foreclosure or to enforce a judgment.

Holder In Due Course

A term in commercial law referring to a party who acquires a negotiable instrument in good faith for value, with certain protections against prior claims.