If Total Fixed Costs Are $179,000, the Contribution Margin Per

question 220

Multiple Choice

If total fixed costs are $179,000, the contribution margin per unit is $10.00, and targeted operating income is $22,000, how many units must be sold to breakeven?

• A)1,790,000
• B)20,100
• C)17,900
• D)220,000

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Sales

The total revenue a company generates from selling goods, services, or both, within a specific period.

Average Collection Period

The average amount of time it takes for a company to receive payments owed by its customers for goods or services sold on credit.