Teal Company the Following Information Relates to Financial Projections of Teal

question 27

Multiple Choice

Teal Company The following information relates to financial projections of Teal Company:
$\begin{array}{ll}\text { Projected sales } & 60,000 \text { units } \\\text { Projected variable costs } & \$ 2.00 \text { per unit } \\\text { Projected fixed costs } & \$ 50,000 \text { per year } \\\text { Projected unit salesprice } & \$ 7.00\end{array}$ Refer to Teal Company.How many units would Teal Company need to sell to earn a profit before taxes of $10,000?

• A)25,714
• B)10,000
• C)8,571
• D)12,000

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Definitions:

System

A group of interacting or interrelated entities that form a unified whole, used to analyze or study a specific domain or set of procedures.

Expected Number

The calculated average or mean value of a numeric dataset, predicting the central value around which other values tend to cluster.

Customers In Service

The number of customers currently being served or assisted in a service-based business or setting.

Probability

The measure of the likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.