A Company Has Net Profit of $10 000, Sales Price

question 19

Multiple Choice

A company has net profit of $10 000, sales price per unit of $25 and fixed costs of $40 000. The company would like to increase profits by 50%. What percentage increase in sales volume would be needed to achieve this goal?

• A) 20%
• B) 10%
• C) 12.5%
• D) Answer cannot be determined from the information given

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Definitions:

Performance Appraisal

The systematic evaluation of an employee's job performance and productivity, typically in terms of quality, quantity, cost, and time, often by their respective supervisor.

Formally Assessing

The systematic evaluation of something using established procedures or criteria to determine its value or quality.

Work Accomplishments

Achievements or completed tasks in a professional setting that contribute to an organization's goals.

Evaluation Purpose

The objective or reason behind assessing the performance, quality, or value of a person, product, or idea.