The ABC Corporation Is Considering Introducing a New Product,which Will

question 36

Multiple Choice

The ABC Corporation is considering introducing a new product,which will require buying new equipment for a monthly payment of $5,000.Each unit produced can be sold for $20.00.ABC incurs a variable cost of $10.00 per unit.Suppose that ABC would like to realize a monthly profit of $50,000.How many units must they sell each month to realize this profit?

• A)500 units
• B)450 units
• C)4500 units
• D)5000 units
• E)5500 units

---

Definitions:

Transferee

An individual or entity that receives property, rights, or interests from a transferor.

LLC Member

An individual or entity that holds an ownership interest in a Limited Liability Company, participating in the management and operation of the LLC according to the terms of the operating agreement.

LLC

A Limited Liability Company is a U.S. business entity that merges the tax benefits of a partnership or sole proprietorship with the corporation's advantage of limited liability.

Partnership Taxation

The tax rules and regulations that apply to the income, deductions, and credits of a partnership and how they are reported to the partners.