Select all that apply Company A has sales of $500,000 variable costs of $350,000, and fixed...

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Select all that apply Company A has sales of $500,000 variable costs of $350,000, and fixed costs of $150,000. Company A has:

business accounting

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Answer 1

Answer #1

The correct answer is "reached the break even point".

Supporting explanations:

Break-even point arrives when contribution margin equals to the fixed costs and the Contribution margin is calculated by deducting total variable costs from the total sales revenue. The same has shown below -

Sales revenue	$500,000
Less: Variable costs	($350,000)
Contribution margin	$150,000

Therefore, the contribution margin is $150,000 which is equal to the fixed costs of $150,000 that results into break-even point.

Hence, the correct answer is, Company A has reached the break-even point.

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Answer 2

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Select all that apply Company A has sales of $500,000 variable costs of $350,000, and fixed...

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