A Company Has an Operating Income of $20 Million and Total

question 33

Multiple Choice

A company has an operating income of $20 million and total fixed expenses of $10 million.5 million units are produced at a margin of $6 per unit.What should the margin per unit be if the company needs to achieve a break-even volume for the same number of units?

• A)$1 per unit
• B)$2 per unit
• C)$3 per unit
• D)$4 per unit
• E)$5 per unit

---

Definitions:

Diverse Environments

Contexts or settings characterized by a wide range of differences, including cultural, biological, social, and ecological variation.

Mechanistic Structures

Organizational designs characterized by rigid hierarchies, strict rules, and clear, centralized decision-making processes.

Stable Environments

Environments that are consistent, predictable, and relatively unchanging over a period of time.

Knowledge Management

involves the process of creating, sharing, using, and managing the knowledge and information of an organization, to enhance its performance and competitiveness.