A Firm Estimates That It Will Sell 100,000 Units of Its

Multiple Choice

A firm estimates that it will sell 100,000 units of its sole product in the coming period.It projects the sales price at $40 per unit,the CM ratio at 60 percent,and profit at $500,000.What is the firm budgeting for fixed costs in the coming period?

A) $1,600,000
B) $2,400,000
C) $1,100,000
D) $1,900,000