Old MacDonald Had a Farm with Expected Fixed Costs for Next

question 132

Multiple Choice

Old MacDonald had a farm with expected fixed costs for next year of $91,000. The projected selling price per bushel is $12, with variable costs of $5 per bushel.
How many bushels past the breakeven point does MacDonald have to sell to realize a pre-tax profit of $37,100?

• A) 18,300
• B) 5,300
• C) 7,420
• D) 13,000

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards such as money, grades, or praise.

Seniority-Based Pay

A compensation system where an employee's wage or salary is determined by their length of service in the company.

Guaranteed Wages

A compensation strategy where employees are assured of a minimum amount of income, regardless of work hours or output.

Skill-Based Pay

A compensation system that rewards employees for their range of skills or depth of knowledge, rather than their job title.