Given a Break?even Point of 88,000 Units and a Contribution

question 173

Multiple Choice

Given a break?even point of 88,000 units and a contribution margin per unit of $9.60, the total number of units that must be sold to reach a net pre-tax profit of $18,096 is _____.

• A)89,885 units
• B)88,000 units
• C)1,885 units
• D)indeterminable

Analyze the economic implications of contracting in foreign currencies versus U.S. dollars.

Interpret financial data from currency exchange listings to make informed business decisions.

Utilize rounding rules appropriately in financial calculations.

Assess the benefits of conducting transactions within foreign trade zones.

---

Definitions:

International Sales

Transactions involving the sale of goods between parties located in different countries.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform framework for international commerce.

Express Contract

A contract in which the terms and conditions are clearly stated and agreed upon by all parties, either verbally or in writing.

Finders Fee

A commission paid to an intermediary or the facilitator of a transaction.