Use the following information to determine the cash fixed costs: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; and interest expenses = $20,000.
A)$380,000
B)$400,000
C)$480,000
D)$500,000

Question

Quizplus · Accepted Answer

Cash fixed costs include administrative, marketing, and interest expenses, but exclude non-cash expenses like depreciation. Therefore, $200,000 (administrative) + $180,000 (marketing) + $20,000 (interest) = $400,000.

Use the Following Information to Determine the Cash Fixed Costs