To Find the Number of Units That Need to Be

question 53

Multiple Choice

To find the number of units that need to be sold to breakeven, the formula used could be

• A)fixed expenses ÷ contribution margin per unit.
• B)contribution margin per unit ÷ fixed expenses.
• C)fixed expenses ÷ contribution margin ratio.
• D)contribution margin ratio ÷ fixed expenses.

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Definitions:

Nonunion Firms

Companies where the workforce is not represented by a labor union.

Foreign Producers

Manufacturers or producers located in a country or jurisdiction different from where their products are sold or consumed.

Wage Increases

Adjustments or rises in the amount of money that workers are paid for their labor, often seen as a reflection of economic growth or inflation.

Real Wages

Wages adjusted for inflation, representing the purchasing power of the income received by workers.