A Group of Venture Investors Is Considering Putting Money into Lemma

question 87

Multiple Choice

A group of venture investors is considering putting money into Lemma Books,which wants to produce a new reader for electronic books.The variable cost per unit is estimated at $250,the sales price would be set at twice the VC/unit,or $500,and fixed costs are estimated at $750,000.The investors will put up the funds if the project is likely to have an operating income of $500,000 or more.What sales volume would be required in order to meet the minimum profit goal? (Hint: Use the break-even formula,but include the required profit in the numerator.)

• A)4,513
• B)4,750
• C)5,000
• D)5,250
• E)5,513

---

Definitions:

Individual Responsibilities

Duties or tasks that are assigned to a particular person in a group or organization.

Project Goals

Specific, measurable objectives that are intended to be achieved within a set timeframe by a project team.

Dominating The Meeting

Taking control of a meeting's discussions in a manner that may prevent others from contributing equally.

Contribute

To give or supply in common with others; sharing in a task or providing resources towards a common goal.