Solved

A Company Has Fixed Costs of $320,000 and a Contribution

Question 59

Multiple Choice

A company has fixed costs of $320,000 and a contribution margin per unit of $15.If the firm wants to earn a target $40,000 pretax income,how many units must be sold (rounded to the nearest whole unit) ?


A) 24,000.
B) 21,333.
C) 18,666.
D) 2,667.
E) 20,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: As the level of volume of activity

Q55: Glover Headgear produces specialty logo baseball caps

Q56: McCoy Brothers manufactures and sells two products,A

Q57: A graph used to analyze past cost

Q70: The high-low method can be used to

Q95: A break-even point can be calculated either

Q137: Zola Co. has a contribution margin ratio

Q171: Scatter diagrams plot volume (units) on the

Q206: The basic form of cost-volume-profit analysis is

Q233: The break-even point is the sales level