Kelvin Co Produces and Sells Socks

question 10

Multiple Choice

Kelvin Co. produces and sells socks. Variable costs are budgeted at $4 per pair, and fixed costs for the year are expected to total $90,000. The selling price is expected to be $6 per pair.
The sales units required for Kelvin Co. to make an after-tax profit (πA) of $15,000, given an income tax rate of 40%, are:

• A) 47,500 units.
• B) 56,500 units.
• C) 65,661 units.
• D) 60,000 units.
• E) 57,500 units.

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Definitions:

Mechanism

A detailed description of the step-by-step process by which reactants are converted into products in a chemical reaction.

Organic Product

A substance that results from organic reactions, typically containing carbon atoms bonded to hydrogen, oxygen, or other carbon atoms.

Chair Conformation

A term used in organic chemistry to describe the most stable conformation of cyclohexane, resembling a chair, which minimizes steric hindrance and sets the stage for discussions on stereochemistry.

Substituted Cyclohexane

A cyclohexane molecule in which one or more of the hydrogen atoms have been replaced by another atom or group of atoms, affecting its chemical and physical properties.