The Corner Market has fixed costs of $1,600,depreciation of $1,200,a tax rate of 35%,and a cost of capital of 12%.Variable costs represent 67% of sales.What minimum level of sales must the market obtain to avoid a net loss on its income statement?
A) $8,484.85
B) $6,666.67
C) $7,033.33
D) $7,867.67

Question

Quizplus · Accepted Answer

Accounting B / E = ($1,600 + 1,200) / (1 − 0.67) = $8,484.85

The Corner Market Has Fixed Costs of $1,600,depreciation of $1,200,a