A Company Sells a Product Which Has a Unit Sales

question 26

Multiple Choice

A company sells a product which has a unit sales price of $5 unit variable cost of $3 and total fixed costs of $240000. The number of units the company must sell to break even is

• A) 120000 units.
• B) 48000 units.
• C) 480000 units.
• D) 80000 units.

Determine the operational efficiency and credit management of a company through inventory and receivables turnover periods.

Interpret profitability ratios to evaluate a company's earning potential.

Understand the significance of market valuation ratios and their impact on investor perceptions.

Analyze the capital structure of a company and assess leverage risks through debt ratios.

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Definitions:

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The practice of promoting products, services, or brands through various forms of media to attract potential customers.

Promotion

A marketing strategy that involves the use of various tactics to increase consumer awareness, generate sales, and foster brand loyalty.

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A measure of a website's ability to keep visitors engaged and encourage them to visit multiple pages or return to the site frequently.