Duke Corporation Sells Fans for $20 Per Unit

question 44

Multiple Choice

Duke Corporation sells fans for $20 per unit. In 2011, fixed costs are expected to be $450,000, and the variable cost ratio is 60%. How many fans must Duke sell to generate operating income of $60,000?

• A) 42,500
• B) 56,250
• C) 60,000
• D) 63,750

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Definitions:

Bankruptcy Rules

Regulations governing the process of bankruptcy, dictating how debts are discharged and assets are handled among creditors and debtors.

Bankruptcy Judges

Judges specialized in adjudicating bankruptcy cases, overseeing the legal process that involves the examination of debts and assets of individuals or businesses unable to pay their debts.

Federal District Courts

Courts of the first level in the federal judicial system of the United States, where civil and criminal cases under federal statutes are tried.

Liquidation

The process of converting a company's assets into cash to pay off creditors before closing the business.