Opal Company Manufactures a Single Product That It Sells for $90

question 16

Multiple Choice

Opal Company manufactures a single product that it sells for $90 per unit and has a contribution margin ratio of 35%. The company's fixed costs are $46,800. If Opal desires a monthly target operating profit equal to 15% of sales, sales will have to be (rounded) :

• A) 1,486 units.
• B) 3,467 units.
• C) 1,040 units.
• D) 2,600 units.

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Definitions:

Cochlea's Hair Cells

Sensory cells located in the cochlea of the inner ear that transform sound vibrations into electrical signals for hearing.

Audition

The sense or act of hearing, through which sound is perceived.

Kinesthesia

The awareness that feels the position, weight, or activity of the muscles, tendons, and joints in the body.

Top-Down Processing

An information processing approach where perception begins with the brain, applying what it knows or expects to perceive and interpret the information from that top-level down.