Refer to the Table Above

question 34

Multiple Choice

Refer to the table above. How many units will need to be sold in 2017 to generate a gross profit of $150,000?

• A) 4,500 units
• B) 5,000 units
• C) 6,000 units
• D) 5,500 units

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Definitions:

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Liability

Any form of financial debt or obligation that an individual or company owes, which is recorded on the balance sheet.

Dividend Growth Model

A valuation method that forecasts the price of a stock by using predicted dividends and discounting them back to present value.

Stock

Portions of equity in a company that signify an ownership interest and a right to its assets and profits.