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Assume Total Fixed Costs of $160,000, Variable Costs Per Unit

question 30

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Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4.How many units must be sold to meet a target net income of $50,000, assuming a tax rate of 20%?


Definitions:

Job Classification System

A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.

Point System

A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it

Work Evaluation

The process of assessing the performance of employees or tasks, typically to inform decisions about promotions, salaries, or training needs.

Water Catchment

An area of land where precipitation collects and drains off into a common outlet, such as a river, bay, or other body of water.

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