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