Smith Company Reported the Following Results from Sales of 5,000

question 53

Multiple Choice

Smith Company reported the following results from sales of 5,000 units of Product A for June: $\begin{array}{ll}\text { Sales } & \$ 200,000 \\\text { Variable costs } & ({120,000}) \\\text { Fixed costs } & (\underline{60,000}) \\\text { Operating income } & \underline{\$ 20,000}\end{array}$ Assume that Smith increases the selling price of Product A by 10 percent in July.How many units of Product A would have to be sold in July to generate an operating income of $20,000?

• A)4,000
• B)4,300
• C)4,545
• D)5,000

---

Definitions:

Biological Model

A representation of a biological process or system, often using mathematical equations or computer simulations, to study complex phenomena in biology.

Positive Feedback Loop

A process where the output of a system amplifies the initial condition, leading to an even greater output in a self-reinforcing cycle.

Negative Feedback Loop

A regulatory mechanism in which a system responds in a way that reverses the direction of a change, helping to maintain stability or equilibrium.

Mathematical Models

Quantitative representations of real-world phenomena constructed using mathematical language and symbols to predict or analyze behavior and events.