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:

Salience

The quality of being particularly noticeable or important; the state or condition of standing out from others due to prominence.

Accessibility

In psychology, it refers to the ease with which information can be retrieved from memory; in general, it describes how readily available or obtainable something is.

Association

A connection or relationship between thoughts, ideas, people, or objects, which may be formed through experiences or cognitive processes.

Schema

A cognitive framework that organizes and interprets information in the brain, influencing perception and understanding.