How Many Units Need to Be Sold to Earn an Annual

question 10

Multiple Choice

How many units need to be sold to earn an annual net income equal to 10% of sales?

• A) 44,000 units.
• B) 53,200 units.
• C) 54,500 units.
• D) 47,500 units.

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Definitions:

Cash Discounts

Reductions in price offered to customers for prompt payment of their bills.

Interest Days

The number of days over which interest is calculated, often used in the context of loans or investments.

Consumer Loans

Loans given to individuals by financial institutions for personal, family, or household purposes such as buying a car or home improvement.

Actual Interest Rate

The true rate of interest earned or paid on an investment, loan, or other financial product over a specific time period.