If Fixed Costs Are $650,000 and the Unit Contribution Margin

question 195

True/False

If fixed costs are $650,000 and the unit contribution margin is $30, the sales necessary to earn an operating income of $30,000 are 14,000 units.

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Definitions:

Plane Operating Costs

Expenses related to the operation of an aircraft, including fuel, maintenance, crew salaries, and hangar fees.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more precise financial planning and analysis.

Administrative Expenses

Costs related to the general operation of a company, including expenses such as rent, salaries of administrative staff, and office supplies.

Patient-Visits

A measure used in healthcare to quantify the number of encounters a patient has with medical professionals.