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Sonoma Winery Has Fixed Costs of $10,000 Per Year

Question 21

Multiple Choice

Sonoma Winery has fixed costs of $10,000 per year. Its warehouse sells wine with variable costs of 80% of its unit selling price. How much in sales does Sonoma need to break even per year?


A) $8,000
B) $2,000
C) $12,500
D) $50,000

Correct Answer:

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