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:

Performance Rating

The evaluation of an individual's work output and effectiveness in their designated role, typically influencing promotions, salary adjustments, and development opportunities.

Constant Allowances

Fixed amounts or factors considered in calculations or processes, not subject to change based on conditions.

Normal Time

The standard duration that a task or activity is expected to take under normal circumstances.