In 2019, Raleigh Sold 1,000 Units at $500 Each, and Earned

question 68

Multiple Choice

In 2019, Raleigh sold 1,000 units at $500 each, and earned net income of $40,000. Variable expenses were $300 per unit, and fixed expenses were $160,000. The same selling price is expected for 2020. Raleigh's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10,000. How many units must Raleigh sell in 2020 to maintain the same income level as 2019?

• A) 882
• B) 1,000
• C) 1,056
• D) 1,118

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Definitions:

Subacute

Describes a condition or illness that is not as severe as an acute episode but is more severe than a chronic condition, often indicating an intermediate stage.

Syn-

A prefix meaning "together" or "with," used in various scientific and medical terms.

Sym-

A prefix in medical terminology indicating together, with, or alongside.

Ambilateral

Pertaining to or affecting both sides equally.