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

question 15

Multiple Choice

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?

• A) 21,250 units.
• B) 18,750 units.
• C) 24,375 units.
• D) 14,167 units.

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Definitions:

Respiratory Disorder

A term for any disease or condition that affects the lungs or breathing, such as asthma, COPD, or pneumonia.

Prone to Illness

A predisposition or increased susceptibility to becoming sick or contracting diseases.

Upstream View

A perspective focusing on the early causes or preventive measures for issues, often used in health promotion to address factors before they result in problems.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, often used to make a comparison without using "like" or "as".