Jackson Samuelson Would Like to Add a New Product to Complete

question 119

Multiple Choice

Jackson Samuelson would like to add a new product to complete their lineup. The financial manager wants to know how many units the firm must sell to limit their potential loss to their initial
Investment. What is this quantity if their annual fixed costs are $36,000, the annual depreciation
Expense is $17,900, and the contribution margin is $3.20?

• A) 5,594 units
• B) 5,656 units
• C) 6,133 units
• D) 11,250 units
• E) 16,844 units

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Definitions:

Standing-Room Close

A sales technique designed to create a sense of urgency among potential buyers, suggesting that the opportunity or product will soon be unavailable, similar to an event that has only standing room available.

Countersuggestion

A suggestion that evokes an opposite response from the prospect.

Indirect Suggestion

A technique used in sales and communication wherein an idea or preference is implied or suggested rather than explicitly stated, influencing the receiver's thoughts or actions subconsciously.