The Following Is Addison Corporation's Contribution Format Income Statement for Last

question 80

Multiple Choice

The following is Addison Corporation's contribution format income statement for last month:

$\begin{array} { | l | r | } \hline \text { Sales } & \$ 1,000,000 \\\hline \text { Less: variable expenses } & \underline { 700,000 } \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less: fixed expenses } & \underline { 180,000 } \\\hline \text { Operating income } & \$ 120,000 \\\hline\end{array}$ The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

-What is the company's break-even in units?

• A) 20,000 units.
• B) 0 units.
• C) 18,000 units.
• D) 12,000 units.

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Definitions:

Marketing Strategy

A company's plan for promoting and selling its products or services, including market research, advertising, and sales tactics.

Long Term

The long term refers to an extended period of time, often relating to strategic planning, investments, and outcomes that are expected to unfold or mature over several years.

Aggressive Direct Selling

A highly assertive sales strategy where products or services are sold directly to consumers in a manner that energetically pushes for immediate sales.