Assume the Following Information How Many Units Must Be Sold to Generate a Before-Tax

question 43

Multiple Choice

Assume the following information: $\begin{array}{llr} \text { Selling price per unit} &\$150\\ \text { Contribution margin ratio } &40\%\\ \text { Total fixed costs } &\$225,000\end{array}$
How many units must be sold to generate a before-tax profit of $45,000?

• A)2,500 units
• B)3,000 units
• C)3,750 units
• D)4,500 units

---

Definitions:

Technological Progressiveness

The rate at which an organization or society adopts and implements new technologies, enhancing productivity and innovation.

Industry Concentration Ratio

A metric that assesses the degree of market control held by the largest firms within an industry, indicating the level of competition.

Herfindahl Index

A measure used to calculate the size of firms in relation to the industry and to indicate the level of competition among them.

Retained Earnings

Profits that a company keeps or reinvests after dividends are paid out to shareholders, instead of distributing them completely.