Anderson Corporation Sells Picture Calendars for $10 Each

question 134

Multiple Choice

Anderson Corporation sells picture calendars for $10 each. The fixed costs of production are $300,000, and the variable costs are 60% of the selling price. The company desires to make a profit of $120,000. How many calendars must it sell?

• A) 105,000
• B) 70,000
• C) 30,000
• D) 75,000

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Definitions:

Employee

An individual who works part-time or full-time under a contract of employment, typically earning a salary or wage.

Customary Compensation

Payment or remuneration that is considered standard or usual for a particular job or service within a specific industry or community.

Timely Manner

Completing tasks or fulfilling obligations within the expected or agreed timeframe.

Duty

An obligation or responsibility legally or morally bound upon an individual, organization, or entity.