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A Product Sells for $20 Per Unit,and Has a Contribution

question 15

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A product sells for $20 per unit,and has a contribution margin ratio of 40%.Fixed expenses total $120,000 annually.The company that makes and sells the product has an income tax rate of 40%.How many units must be sold to yield an after-tax operating profit of $30,000?


Definitions:

Unstated Conclusion

A conclusion that is implied or suggested in an argument but not explicitly expressed.

Subject Term

In logic, the term about which something is being asserted in the premise of a categorical syllogism.

Distributed Propositions

Statements in logic where a property or characteristic is applied to all members of the subject class.

Unstated Premise

An underlying assumption in an argument that is not expressed directly.

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