Figure 4-3

question 76

Multiple Choice

Figure 4-3.Paney Company makes calendars. Information on cost per unit is as follows:
Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10.
-Refer to Figure 4-3. How many units must be sold to yield targeted income of $36,000?

• A) 6,000
• B) 5,833
• C) 8,167
• D) 14,000
• E) 12,000

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Definitions:

Raw Materials

Basic materials that are used in the initial stages of the production process, which will be transformed into finished goods.

Inventory

The goods and materials held by a business for the purpose of sale, manufacturing, or production.

Plant Insurance

Insurance coverage specifically designed to protect the physical assets of a manufacturing or production facility, including buildings and machinery.

Indirect Materials

Materials used in the production process, but cannot be directly linked to a specific product.