Solved

A Firm with Constant Variable Costs Has a Survival Revenue

Question 37

Multiple Choice

A firm with constant variable costs has a survival revenue breakeven of $375,000. This year it had $250,000 in sales, $100,000 of which was a fixed cost. What are the firm's cash fixed costs?


A) $150,000
B) $225,000
C) $625,000
D) $937,500

Correct Answer:

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