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:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Manufacturing

The activities and processes used in making tangible products; also called production.