In Its First Year, Joe's Startup Company Had Revenues of $125,000

Multiple Choice

In its first year, Joe's Startup Company had revenues of $125,000 and cost of goods sold of $81,250, which was the only variable cost. Depreciation was $20,000. Cash fixed costs were $100,000, consisting of $5,000 in financing costs, $50,000 in administrative expenses, and $45,000 in marketing expenses. What is the survival breakeven revenues?

A) $342,857
B) $285,714
C) $271,429
D) $184,615