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

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