During the Past Year a Company Had Total Fixed Costs

question 159

Multiple Choice

During the past year a company had total fixed costs of $700,000.Its product sold for $93 per unit.Variable costs during this time equaled $45 per unit.Next year the company is anticipating a 10% increase in total fixed costs and a $3 per unit decrease in variable costs but would like to maintain its current selling price per unit.How many units must the company sell next year to earn $1 million? (Round answer to complete units.)

• A) 19,608
• B) 34,706
• C) 36,875
• D) 20,833
• E) 19,033

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Definitions:

AT/RT

AT/RT, or Atypical Teratoid/Rhabdoid Tumor, refers to a rare and aggressive type of brain tumor that often affects children.

Meaning

The significance or understanding conveyed by words, symbols, or actions.

DCIS

Ductal Carcinoma In Situ, a non-invasive cancer where abnormal cells are found in the lining of a breast duct.

Meaning

The significance or interpretation of a concept, word, or action.