If Fixed Costs Are $550,000 and the Unit Contribution Margin

question 51

Multiple Choice

If fixed costs are $550,000 and the unit contribution margin is $15,what amount of units must be sold in order to realize an operating income of $125,000?

• A)45,000 units
• B)10,417 units
• C)45,833 units
• D)28,333 units

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Definitions:

Corporate Bonds

Debt securities issued by corporations to finance operations, typically offering fixed interest payments.

Convertible Bond

A type of bond that allows the bondholder to convert the bond into a predetermined number of shares of the issuing company, usually at certain times during its life.

Callable Bond

A kind of security that the issuer has the option to buy back prior to its maturity at a set price.

T-Bill Quote

The price or interest rate expressed for a Treasury bill; often quoted in terms of discount from face value.