Conan Company Has Total Fixed Costs of $112,000

question 68

Multiple Choice

Conan Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Conan Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?

• A) 1,120.
• B) 8,214.
• C) 11,200.
• D) 12,320.
• E) 14,080.

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Definitions:

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A type of mortgage loan where the interest rate can change over time based on a benchmark interest rate or index that reflects the cost to the lender.

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A program initiated by the U.S. government during the 2008 financial crisis to purchase toxic assets and inject capital into banks to stabilize the financial system.