A Computer Store Has a Profit Goal of $50,000 for Computers

question 99

Multiple Choice

A computer store has a profit goal of $50,000 for computers selling for $1,000 per unit. Its fixed costs are $30,000, and its contribution margin is $100. According to break-even analysis, how many units must be sold to meet the profit goal?

• A) Cannot tell without more data
• B) 5,000
• C) 1,000
• D) 800
• E) 3,000

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Definitions:

Buyer

An individual or entity that purchases goods or services.

Merchandise

Products that are bought and sold, typically in a retail environment.

Competitors

Entities that compete in the same industry or market against one another, offering similar goods or services.

Key Chains

Small, usually decorative chains or rings used for holding keys together.