A Product Is Priced to Sell for $12 with Average

question 15

Multiple Choice

A product is priced to sell for $12 with average variable costs of $8. The company expects to earn a profit of $400,000 with its total fixed costs of $120,000. What is the minimum number of units that must be sold in order to reach this target return?

• A) 80,000
• B) 120,000
• C) 130,000
• D) 400,000

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Definitions:

Apical Pulse

Heartbeat as listened to with the bell or diaphragm of a stethoscope placed on the apex of the heart.

Critical Thinking Skill

The ability to actively and skillfully conceptualize, apply, analyze, synthesize, and evaluate information to reach an informed conclusion.

Clinical Decisions

The judgment and determinations made by healthcare professionals in the context of clinical care, based on a patient's health information and treatment options.

Critical Thinking

Active, purposeful, organized, cognitive process used to carefully examine one's thinking and the thinking of other individuals.