To Reach a Target Income of $20,000, a Firm with Fixed

question 54

Multiple Choice

To reach a target income of $20,000, a firm with fixed costs of $10,000 and a per-unit contribution margin of $5 must sell:

• A) 2,000 units
• B) 4,000 units
• C) 6,000 units
• D) 8,000 units

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Definitions:

Classification Category

A level or rank in a systematic organization used to group entities with common characteristics, such as in biological taxonomy.

Species

The basic unit of biological classification, defined as a group of organisms capable of interbreeding and producing fertile offspring.

Extinction

The permanent loss of all members of a species from the earth, leading to a decrease in biodiversity.

Century

A period of one hundred years.