A Product Sells for $20 Per Unit,and Has a Contribution

question 59

Multiple Choice

A product sells for $20 per unit,and has a contribution margin ratio of 40%.Fixed expenses total $120,000 annually.How many units must be sold to yield a profit of $30,000?

• A) 12,500 units.
• B) 18,750 units.
• C) 20,000 units.
• D) 25,000 units.

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Definitions:

Positive Psychology

A branch of psychology focused on the study and promotion of human strengths, virtues, and factors that contribute to a fulfilling life.

Martin Seligman

A psychologist known for his work in positive psychology and studies on happiness and well-being.

Positive Psychology

A branch of psychology that focuses on the study of positive human functioning and what makes life most worth living.

Subjective Well-being

Subjective well-being refers to how individuals experience and evaluate their own lives in terms of happiness and contentment.