Kress, Inc

question 13

Multiple Choice

Kress, Inc. wants to sell a sufficient quantity of products to earn a profit of $40,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $80,000, how many units must be sold to earn income of $40,000?

• A) 60,000 units
• B) 40,000 units
• C) 15,000 units
• D) 600,000 units

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Definitions:

Fidelity Bond

An employer’s insurance against an employee’s wrongful conduct.

Employer

An individual or organization that hires and pays for the services of workers.

Life Insurance

A contract between an insurer and an insured that guarantees payment to named beneficiaries upon the death of the insured.

Pay-outs

Pay-outs refer to amounts of money paid to someone, often as part of a settlement, as earnings or as a distribution from investments.