Flannigan Company Manufactures and Sells a Single Product That Sells

question 117

Multiple Choice

Flannigan Company manufactures and sells a single product that sells for $450 per unit;variable costs are $300.Annual fixed costs are $870,000.Current sales volume is $4,200,000.Flannigan Company management targets an annual pre-tax income of $1,125,000.Compute the unit sales to earn the target pre-tax net income.

• A)4,333.
• B)7,500.
• C)6,650.
• D)13,300.
• E)11,750.

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Definitions:

International Marketing

The practice of promoting and selling products or services across national borders.

Distribution Channels

Networks through which a company delivers its products or services to its customers, including pathways involving wholesalers, retailers, or direct sales.

Reduce Costs

The process of cutting expenses in order to improve profitability or financial health.

Promotion Efficiency

The effectiveness and efficiency of marketing strategies in reaching and persuading potential customers to make a purchase.