Reference: 08-05 Dorian Company Produces and Sells a Single Product. the Product

question 90

Multiple Choice

Reference: 08-05
Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
-If the selling price is reduced by 5%, variable expenses reduced by $1.00, and fixe? expenses increased to a total of $38,400, how many units would need to be sold to earn a net income of $21,000?

• A)2,950 units.
• B)1,700 units.
• C)1,000 units.
• D)2,700 units.

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Definitions:

Drop Shadow

A visual effect consisting of a drawing element which looks like the shadow of an object, giving the impression that the object is raised above the objects behind it.

Picture Effect

Image enhancements or visual filters applied to photos to improve their appearance or convey a particular style.

Picture Border

A decorative frame that can be added around images in a document or presentation to enhance their appearance or distinguish them from the background.

Artistic Effect

A digital filter or tool used in graphic design software to apply creative styles to images, such as painting or sketching effects.