If Fixed Costs Are $700,000 and the Unit Contribution Margin

question 123

Multiple Choice

If fixed costs are $700,000 and the unit contribution margin is $17, the amount of units that must be sold in order to realize an operating income of $100,000 is

• A)5,000 units
• B)41,176 units
• C)47,059 units
• D)58,882 units

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Definitions:

Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal conditions.