Porter Productions Sells Video Tapes for $15

question 178

Multiple Choice

Porter Productions sells video tapes for $15.00 each. Their variable cost per unit is $9.00. In addition, they incur $180,000 in fixed costs each year. How many units will Porter have to produce and sell in order to generate an operating income (revenues minus expenses) of $54,000?

• A)9,000 units
• B)18,000 units
• C)30,000 units
• D)39,000 units
• E)54,000 units

---

Definitions:

Seminal Fluid

A fluid that is secreted by the male reproductive organs and contains sperm cells, which are necessary for fertilization.

Prefrontal Cortex

The area of the cortex at the very front of the brain that specializes in anticipation, planning, and impulse control.

Cognitive Control

The mental ability to regulate and manipulate one's own cognitive processes, such as focusing attention, controlling impulses, and planning.

Sexual Maturation

The process by which individuals reach a state of full reproductive ability.