A Company Has Fixed Costs of $320,000 and a Contribution

question 59

Multiple Choice

A company has fixed costs of $320,000 and a contribution margin per unit of $15.If the firm wants to earn a target $40,000 pretax income,how many units must be sold (rounded to the nearest whole unit) ?

• A)24,000.
• B)21,333.
• C)18,666.
• D)2,667.
• E)20,000.

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