Solved

John Anderson Company Below Is an Income Statement for John

Question 106

Multiple Choice

John Anderson Company Below is an income statement for John Anderson Company:
 Sales $300,000 Variable costs (150,000)  Contribution margin $150,000 Fixed costs (100,000)  Profit before taxes $50,000\begin{array}{ll}\text { Sales } & \$ 300,000 \\\text { Variable costs } & \underline{(150,000) } \\\text { Contribution margin } & \$ 150,000 \\\text { Fixed costs } & \underline{(100,000) } \\\text { Profit before taxes } & \underline{\$ 50,000}\end{array} Refer to John Anderson Company.If the unit sales price for John Anderson's sole product was $10,how many units would it have needed to sell to produce a profit of $40,000?


A) 27,500
B) 29,000
C) 28,000
D) can't be determined from the information given

Correct Answer:

verifed

Verified

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

Related Questions