A Product Sells for $20 Per Unit and Has a Contribution

question 89

Multiple Choice

A product sells for $20 per unit and has a contribution margin ratio of 40%. Fixed expenses total $240,000 annually. How many units of the product must be sold to yield a profit of $60,000?

• A)65,000 units.
• B)37,500 units.
• C)40,000 units.
• D)30,000 units.

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Definitions:

Pay Ranges

A structured scale that outlines the minimum, midpoint, and maximum salary for each position within an organization, facilitating fair and equitable pay.

Point Method

A quantitative technique used in job evaluation that involves assigning point values to various job components to determine the relative value of different jobs within an organization.

Disadvantages

Negative aspects or conditions that impede success or cause inefficiencies.

Aging the Data

Involves adjusting historical data for factors such as inflation or changes in market rates to make it relevant and applicable to current conditions.