If Total Fixed Costs Are $84,000, Contribution Margin Per Unit

question 2

Multiple Choice

If total fixed costs are $84,000, contribution margin per unit is $6.00, and targeted after- tax net income is $18,000 with a 40% tax rate, then the number of units which must be sold is:

• A) 19,000 units
• B) 21,500 units
• C) 14,000 units
• D) 17,000 units

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Definitions:

Indirect

Refers to something not directly aimed at or achieved, often involving an intermediary step or process.

Distribution Channel

A pathway through which goods and services travel from the producer to the consumer, potentially involving various intermediaries.

Geodemographic Segmentation

A market research technique that classifies people based on their geographic location and demographic characteristics.

Geodemographic Database System

A system that combines demographic, geographic, and socio-economic data for use in market analysis and segmentation.