A Product Sells for $200 Per Unit, and Its Variable

question 15

Multiple Choice

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?

• A) 6,500.
• B) 6,000.
• C) 500.
• D) 5,000.
• E) 5,500.

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Definitions:

Seligman

A psychologist known for his work on positive psychology, learned helplessness, and well-being.

Optimistic

Having a positive outlook or expectation about the future, believing that good things will happen.

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positive or negative.

Learned Helplessness

A situation where someone feels unable to control their life, due to trauma or repeated failures.