Phan Company Has Not Reported a Profit in Five Years

question 122

Multiple Choice

Phan Company has not reported a profit in five years.This year the company would like to narrow its loss to $7,500.Assuming its selling price is $36.50 per unit and its variable costs per unit are $24,how many units must be sold to achieve its target given that total fixed costs are $60,000?

• A) 2,188
• B) 1,439
• C) 4,200
• D) 1,600

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Definitions:

Individual Incentive Systems

Programs designed to motivate and reward employees based on their personal performance or achievements.

Reward Distribution

The method or strategy used by an organization to allocate rewards among employees, often based on performance, seniority, or other criteria.

Stock Option Plans

incentive schemes that give employees the option to purchase shares of their company's stock at a set price, typically as part of their compensation package.

Specified Conditions

Conditions that are defined or stated clearly and explicitly, often relating to specific parameters or requirements in a given context.