July Sales for Amherst Arcade Equal $100,000, Variable Costs Equal

Multiple Choice

July sales for Amherst Arcade equal $100,000, variable costs equal $60,000 and fixed costs, including depreciation of $20,000, total $60,000.Which of the following is correct?

A) Amherst Arcade broke even with respect to net income.
B) Amherst Arcade broke even with respect to cash.
C) Amherst Arcade fell $20,000 short of cash break-even.
D) Amherst Arcade broke even with a $20,000 surplus.