Ace Corporation's Variable Costs Are Equal to 43% of Sales

question 17

Multiple Choice

Ace Corporation's variable costs are equal to 43% of sales revenue. Their fixed costs per month are $600,000. Calculate the net income on sales of $2,000,000 per month.

• A) $540,000
• B) $260,000
• C) $798,000
• D) $1,140,000
• E) $280,000

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Definitions:

Atkinson and Shiffrin Model

A model of memory proposed by Richard Atkinson and Richard Shiffrin that describes how information flows through three stages: sensory memory, short-term memory, and long-term memory.

Rehearsal Systems

Techniques or processes used to practice or repeat information or skills to enhance memory retention or proficiency.

Maintenance Rehearsal

A cognitive process that involves repeatedly reviewing information to keep it in short-term memory for extended periods.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, as opposed to simply repeating the term to oneself.