M and M,Inc

question 62

Multiple Choice

M and M,Inc.produces a product that has a variable cost of $3.00 per unit.The company's fixed costs are $30,000.The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000.What is the amount of sales that will be necessary to earn the desired profit?

• A) $75,000
• B) $50,000
• C) $83,333
• D) $125,000

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Definitions:

Long-term Performance

An evaluation of an entity's performance, such as a business or investment, over an extended period of time to assess stability and growth.

Critical Incident Method

A job analysis method by which important job tasks are identified for job success

Recency Error

A bias in performance evaluations where more weight is given to recent events or achievements, overlooking the employee's overall performance period.

Motivation

The driving force behind individuals' actions, desires, and needs, influencing their behavior towards achieving certain goals.