Product Y Sells for $15 Per Unit, and Has Variable

question 386

Multiple Choice

Product Y sells for $15 per unit, and has variable expenses of $9 per unit. Fixed expenses total $300,000 per year. How many units of Product Y must be sold each year to yield an annual profit of $90,000?

• A) 50,000 units
• B) 65,000 units
• C) 15,000 units
• D) 43,333 units

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Definitions:

Mesophyll

The internal tissues of a leaf, consisting of layers where photosynthesis primarily occurs.

Adventitious Roots

Roots that grow from an unusual place, such as from a stem or leaf, often helping in the propagation and support of plants.

Tracheids

Long, thin cells found in the xylem of vascular plants, serving as basic water-conducting elements and structural support.