Phan Company Has Not Reported a Profit in Five Years

question 122

Multiple Choice

Phan Company has not reported a profit in five years.This year the company would like to narrow its loss to $7,500.Assuming its selling price is $36.50 per unit and its variable costs per unit are $24,how many units must be sold to achieve its target given that total fixed costs are $60,000?

• A) 2,188
• B) 1,439
• C) 4,200
• D) 1,600

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Definitions:

Subordinates

Individuals who work under the supervision of someone else within an organization, typically reporting to a manager or supervisor.

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a specific objective.

Decision-making Process

The series of steps taken by individuals or groups to identify and evaluate options in order to choose the best course of action.

Recognition

The act of acknowledging or formally accepting the existence, validity, or legality of something.