Solved

A Company Which Manufactures and Sells One Product Has Fixed

Question 32

Multiple Choice

A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%. How many units would need to be sold in a period to earn a profit of $10,000?


A) 9,000
B) 8,000
C) 36,000
D) 32,000

Correct Answer:

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