In the course of an examination of the financial statements of Control Finance Company the auditors learned that the company has just taken possession of certain heavy industrial equipment from Arrow Manufacturing Company, a debtor in default. Arrow had previously borrowed $60,000 from Control secured by a security interest in the heavy industrial equipment. The amount of the loan outstanding is $30,000. Which of the following is correct regarding the rights of Control and Arrow?
A. Control is not permitted to sell the repossessed equipment at a private sale.
B. Arrow has no right to redeem the collateral at any time once possession has been taken.
C. Control is not entitled to retain the collateral it has repossessed in satisfaction of the debt even though it has given written notice to the debtor and he consents.
D. Arrow is not entitled to a compulsory disposition of the collateral.
D. Arrow is not entitled to a compulsory disposition of the collateral.
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Roberts Produce Company has fixed costs of $14,000. The company's contribution margin ratio is 46%, and the ratio of selling revenue to sales is 20%. What is the breakeven point in sales dollars? (Round your answer to the nearest dollar.)
A) $70,000 B) $30,435 C) $6,440 D) $2,800
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Indicate whether the statement is true or false.