Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company calculates that they will break even if they earn $12,500 of revenue. Their fixed costs are $2,500. Suppose their actual revenue is $20,000.

A company calculates that they will break even if they earn $12,500 of revenue. Their fixed costs are $2,500. Suppose their actual revenue is $20,000. How much are their variable costs?

It says the correct answer is C, please show how to find that.

a. $7,500 b. $17,500 c. $16,000 d. $10,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 10 - One-Time Charges And Other Format Fakes

Authors: Kate Mooney

2nd Edition

0071719326, 9780071719322

More Books

Students also viewed these Accounting questions