Dorian Company Produces and Sells a Single Product

question 119

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.


-If the selling price is reduced by 5%,variable expenses reduced by $1.00,and fixed expenses increased to a total of $38,400,how many units would need to be sold to earn an operating income of $21,000?

• A) 1,000 units.
• B) 2,700 units.
• C) 1,700 units.
• D) 2,950 units.

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Definitions:

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The movement of people from Ireland to other countries, notably to the United States in the 19th and early 20th centuries, driven by factors like the Great Famine.

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A specific group of customers at which a business aims its products and services.