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Assume the Following Information How Many Units Must Be Sold to Generate a Before-Tax

Question 103

Multiple Choice

Assume the following information:  Selling price per unit$180 Contribution margin ratio$48%Total fixed costs $270,000\begin{array} { l } \text { Selling price per unit}&\$180\\ \text { Contribution margin ratio}&\$48\%\\ \text {Total fixed costs }&\$270,000\\\end{array}

How many units must be sold to generate a before-tax profit of $54,000?


A) 4,000 units
B) 2,750 units
C) 3,570 units
D) 3,750 units

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