Jurassic Manufacturers Produces Flooring Material

question 63

Multiple Choice

Jurassic Manufacturers produces flooring material. Fixed costs are $5,000 per month. Sales price for one unit of product is $50, and the variable cost per unit is $30. If Jurassic wishes to earn an operating income of $2,000, how many units need to be sold?

• A) 270
• B) 300
• C) 320
• D) 350

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Definitions:

Gear Oil

A high-viscosity lubricant used in gearboxes, differentials, and transfer cases in vehicles, designed to protect against wear, corrosion, and overheating.

Manual Steering Gear

A steering mechanism in vehicles that requires physical effort from the driver to steer, without the aid of power assistance.

Northern Winter Conditions

Specific environmental conditions characterized by extreme cold, snow, and ice, affecting vehicles and equipment operation.

Operating Leverage

The degree to which a firm can increase operating income by increasing revenue, indicating the proportion of fixed versus variable costs.