Conan Company Has Total Fixed Costs of $112,000

question 68

Multiple Choice

Conan Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Conan Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?

• A) 1,120.
• B) 8,214.
• C) 11,200.
• D) 12,320.
• E) 14,080.

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Definitions:

Graphic Ratings Method

A performance evaluation technique where employees are rated on predefined categories using a visual scale or graph.

Essay Method

A trait approach to performance rating that requires the rater to compose a statement describing employee behaviour.

Critical Incidents Method

A performance appraisal method focusing on the most significant actions of an employee, either positively or negatively impacting their job effectiveness.

Graphic Rating Scale

A method used in performance evaluations that involves marking an employee's level of performance on a chart with predefined categories.