The Hughes Corp

question 110

Multiple Choice

The Hughes Corp. plans to sell its products for $200 each. Its variable cost per unit = $195, and its fixed costs for the year = $100,000. What level of sales will Han need to make a profit of $250,000?

• A) 5,000 units
• B) 20,000 units
• C) 50,0000 units
• D) 70,000 units

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Definitions:

Treasury Stock

Shares repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Shares Outstanding

The total number of shares of stock that are owned by investors, including both public shareholders and company insiders.

Market Price

The existing rate at which a service or asset is traded within a marketplace.

Buy Back

A corporate action in which a company purchases its own shares from the marketplace, reducing the number of outstanding shares.