If a Firm Sells 40,000 Units and the Contribution Margin

question 38

Multiple Choice

If a firm sells 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at this level of sales volume?

• A) $100,000
• B) $30,000
• C) $15,000
• D) $145,000

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Definitions:

Socio-Economic Development

The process of enhancing the economic and social well-being of a community or region, typically through improvements in education, healthcare, and infrastructure.

Rio +20 Corporate Sustainability Forum

An international conference dedicated to promoting sustainable development practices among corporations, held as a part of the Rio+20 United Nations Conference on Sustainable Development.

Closed-Loop

A system or process that is self-regulating through feedback, ensuring that the system operates within its intended parameters.

Corporate Governance

A set of guidelines, methods, and mechanisms that dictate how a business is overseen and regulated.