A Company Desires to Sell a Sufficient Quantity of Products

question 43

Multiple Choice

A company desires to sell a sufficient quantity of products to earn a profit of $400000. If the unit sales price is $20 unit variable cost is $12 and total fixed costs are $800000 how many units must be sold to earn net income of $400000?

• A) 225000 units
• B) 150000 units
• C) 120000 units
• D) 90000 units

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Definitions:

Construct Validity

Construct validity is the extent to which a test measures what it claims to be measuring, reflecting the adequacy of the underlying theoretical model.

Case Study

A research method involving the detailed examination of a single subject to gain in-depth understanding of its aspects.

Guinea Pigs

Commonly refers to a species of rodent used in scientific research, but colloquially can also mean a person who is subjected to an experiment.

Mice or Rats

Mice or rats are small rodents known for their adaptability to various environments, often used in scientific research to understand human diseases and conditions.