Use the Following to Answer the Questions Below

question 6

Multiple Choice

Use the following to answer the questions below.
A proposal for implementing a new product line has an annual fixed cost of $60,000, variable cost of $35 per unit of output, and revenue (selling price) of $55 per unit of output.
-Refer to the instruction above. What volume of output will be necessary for an annual profit of $60,000?

• A) 2,000 units
• B) 3,000 units
• C) 6,000 units
• D) 20,000 units

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Definitions:

Operating Activities

Business actions directly related to the production and delivery of goods and services, generating the majority of a company's cash flow.