If Fixed Costs Are $790,000 and the Unit Contribution Margin

question 28

Multiple Choice

If fixed costs are $790,000 and the unit contribution margin is $60,what amount of units must be sold in order to have a zero profit?

• A)8,353 units
• B)13,167 units
• C)6,570 units
• D)65,833 units

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Definitions:

Wages Payable

Liabilities arising from employees' salaries that are earned but not yet paid by the company, representing an obligation to pay for labor services received.

Depreciable Asset

An asset that loses value over time due to wear and tear or obsolescence and for which depreciation can be applied in accounting.

Chlorinated Hydrocarbons

Chemical compounds containing chlorine, carbon, and hydrogen, which are used in industrial applications but can be harmful to the environment and health.

Pesticides

Chemical substances used to kill or control pests including insects, weeds, and disease-causing organisms, in agricultural and residential settings.