Hologram Printing Company Projected the Following Information for Next Year

question 75

Multiple Choice

Hologram Printing Company projected the following information for next year: $\begin{array} { l } \text {Selling price per unit }&\$75.00\\ \text {Contribution margin per unit }&\$30.00\\ \text {Total fixed costs }&\$120,000\\ \text {Tax rate }&40\%\\\end{array}$

How many units must be sold to obtain an after-tax profit of $67,500?

• A)3,750 units
• B)5,167 units
• C)5,625 units
• D)7,750 units

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Definitions:

Gain In Producer Surplus

An increase in the difference between what producers are willing to accept for a good versus what they actually receive.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of a good or service.

Chocolate Market

The economic marketplace that encompasses the production, distribution, and sale of chocolate products.

Producer Surplus

The gap between the price at which suppliers are prepared to offer a product and the actual amount they get for it.