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Group of Venture Investors Is Considering Putting Money into Lemma

Question 65

Multiple Choice

group of venture investors is considering putting money into Lemma Books, which wants to produce a new reader for electronic books.The variable cost per unit is estimated at $250, the sales price would be set at twice the VC/unit, fixed costs are estimated at $750,000, and the investors will put up the funds if the project is likely to have an operating income of $500,000 or more.What sales volume would be required in order to meet this profit goal?


A) 4,513
B) 4,750
C) 5,000
D) 5,250
E) 5,513

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