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If Total Fixed Costs Are $84,000, Contribution Margin Per Unit

question 126

Multiple Choice

If total fixed costs are $84,000, contribution margin per unit is $6.20, and targeted after?tax net income is $18,000 with a 40% tax rate, then the number of units that must be sold is _____.


Definitions:

True Score

The theoretical value that precisely reflects an individual's actual ability or characteristic measured by a test, absent of any measurement error.

Construct Validity

The extent to which an assessment accurately gauges what it professes to evaluate.

Reliable

Pertains to the consistency of a measure or instrument; if the results are repeatable under the same conditions.

Valid

Refers to the extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

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