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Locus Company Has Total Fixed Costs of $112,000

Question 89

Multiple Choice

Locus Company has total fixed costs of $112,000.Its product sells for $35 per unit and variable costs amount to $25 per unit.Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs.How many units must be sold to achieve this target income level?


A) 1,120.
B) 8,214.
C) 11,200.
D) 12,320.
E) 14,080.

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