The Following Is Addison Corporation's Contribution Format Income Statement for Last

question 53

Multiple Choice

The following is Addison Corporation's contribution format income statement for last month:

$\begin{array} { | l | r | } \hline \text { Sales } & \$ 1,000,000 \\\hline \text { Less: variable expenses } & \underline { 700,000 } \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less: fixed expenses } & \underline { 180,000 } \\\hline \text { Operating income } & \$ 120,000 \\\hline\end{array}$ The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

-How many units would the company have to sell to attain target operating profits of $150,000?

• A) 22,000 units.
• B) 37,500 units.
• C) 25,000 units.
• D) 26,667 units.

Recognize the effects of cultural values on leadership and organizational behavior.

Identify strategies to discourage intolerance and discrimination in the workplace.

Comprehend the role of gender in leadership and the existence of gender biases.

Understand the impact of power distance on leadership styles and effectiveness.

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Definitions:

Replacement Projects

Projects undertaken by a company to replace old or obsolete assets in order to maintain or improve current operations.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and efficiency.

Corporate Tax Rate

A percentage of a corporation's profits taken as tax by the government.

Operating Earnings

Operating earnings refer to the profit a company makes from its normal business operations, excluding non-operating income and expenses.