Nancy Company Has Sales of $100,000,variable Costs of $5 Per

question 88

Multiple Choice

Nancy Company has sales of $100,000,variable costs of $5 per unit,fixed costs of $25,000,and a profit of $15,000.How many units were sold?

• A)20,000
• B)16,000
• C)12,000
• D)8,000

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Definitions:

Face Value

The nominal or dollar value printed on a security or currency, representing its legal value.

Note Receivable

A written promise for amounts to be received by a business, typically including interest.

Allowance Method

An accounting technique used to account for bad debts, where an estimated amount is deducted from accounts receivable to reflect possible non-collection.

Bad Debts

are amounts owed to a company that are considered uncollectible, leading to a financial loss.