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Alloy Has Annual Fixed Operating Costs of $200,000 and Variable

Question 115

Multiple Choice

Alloy has annual fixed operating costs of $200,000 and variable costs of $400 per camper. Total fees charged to campers amount to $600 each. The camp expects 400 campers next summer. Projected government grants are $100,000. How much must Alloy raise from other sources to break even?


A) $50,000
B) $30,000
C) $60,000
D) $20,000

Correct Answer:

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