The Following Information Is for High Corp

question 162

Multiple Choice

The following information is for High Corp:

The number of units that High Corp must sell to reach targeted operating income of $25,000 is ________. (Round up to the nearest unit.)

• A) 6,750 units
• B) 8,000 units
• C) 1,250 units
• D) 2,667 units

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Definitions:

Profit Maximization Condition

The state or point at which a firm achieves the highest possible profit, often determined by the marginal cost equalling the marginal revenue.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Price Taker

An entity in a market that has no control over the prices at which it buys or sells goods, typically because it is too small to influence market prices.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels.