The Wiltmore Co

question 280

Multiple Choice

The Wiltmore Co. would like to add a new product to complete their lineup. They want to know how many units they must sell to limit their potential loss to their initial investment. What is this quantity if
Their fixed costs are $12,000, the depreciation expense is $2,500, and the contribution margin is
$1) 30? (Round to whole units)

• A) 9,231 units
• B) 9,903 units
• C) 10,002 units
• D) 10,629 units
• E) 11,154 units

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Definitions:

Elasticity of Demand

A gauge of the degree to which a change in price impacts the demanded amount of a good or service.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, typically expressed as a percentage.

Slightly Elastic

Slightly elastic refers to a situation where a small change in price leads to a relatively small change in the quantity demanded or supplied.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.