A Company Which Manufactures and Sells One Product Has Fixed

question 23

Multiple Choice

A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%. How many units would need to be sold in a period to earn a profit of $10,000?

• A) 9,000
• B) 8,000
• C) 36,000
• D) 32,000