A company sclls two products, one with sales of $10,000 and variable another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: A. $33,100 B. $22,900 C. $51,020 D. $48,676 4. expenses of $2,500,
A company sclls two products, one with sales of $10,000 and variable another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: A. $33,100 B. $22,900 C. $51,020 D. $48,676 4. expenses of $2,500,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company sclls two products, one with sales of $10,000 and variable expenses of $2,500,
another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are
4.
$33,100.
Breakeven point for the whole company is close to:
A. $33,100
B. $22,900
C. $51,020
D. $48,676
A company that reduces the proportion of variable costs in its cost structure will:
A. enjoys higher stability in profits.
B. increase its profits more when the economy is good.
C. have a loss more easily when the economy is bad.
5.
D. be indifferent.
6.
is normally recorded on any financial statement but irrelevant in decision
making which is not.
A. Sunk cost
B. Incremental cost
C. Differential cost
D. Opportunity cost
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