Homework Answers
Solution 21:
If company is operating at break even point then fixed expenses = Contribution margin = Sales - Variable expenses
= $250,000 - $130,000 = $120,000
Hence option 3 is correct.
Solution 22:
True, The sales budget often includes a schedule of expected cash collections.
Hence first option is correct.
Solution 23:
Advertising a product would be considered a product level activity.
Hence 3rd option is correct.
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QUESTION 21 A company had total sales of $250,000 and variable expenses totaling $130,000. If the...
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