Johnson's Plumbing's Fixed Costs Are $700,000 and the Unit Contribution

question 223

Multiple Choice

Johnson's Plumbing's fixed costs are $700,000 and the unit contribution margin is $17.What amount of units must be sold in order to realize an operating income of $100,000?

• A) 5,000
• B) 41,176
• C) 47,059
• D) 58,882

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Definitions:

Claimholders

Individuals or entities that have a claim or potential claim against a company's assets or income, including shareholders, creditors, and employees.

Secondary Stakeholders

Individuals or groups who do not engage in direct transactions with a company but are affected by or can affect its operations.

Special-Interest Groups

Organizations composed of members who share common objectives and actively seek to influence public policy in their interest.

Shareholder Models

Refer to theoretical frameworks that describe how shareholders interact with and influence corporate governance and decision-making processes.