Summersville Production Company Had the Following Projected Information for the Current

question 14

Multiple Choice

Summersville Production Company had the following projected information for the current year: $$\begin{array} { l l r } \text { Selling price per unit } & \$ 150 \\\text { Variable cost per unit } & \$ 90 \\\text { Total fixed costs } & \$ 300,000\end{array}$$
What level of sales dollars is needed to obtain a target before-tax profit of $75,000?

• A)$375,000
• B)$625,000
• C)$750,000
• D)$937,500

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Definitions:

Owner

The person or entity that has legal title, possession, or control over property, assets, or goods, and has the right to use, manage, and dispose of them.

Concurrent Property Ownership

Refers to a situation where two or more parties hold ownership rights in a single piece of property simultaneously.

Cooperative

An organization owned and operated by a group of individuals for their mutual benefit.

Fee Simple Absolute

The most complete form of property ownership, giving the owner total control and rights to the property.