A Product Is Sold for $45 and Has Variable Costs

question 50

Essay

A product is sold for $45 and has variable costs of $33 per unit. The total fixed costs for the firm are $180,600. If the firm desires to earn a pretax income of $77,400, how many units must be sold?

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Definitions:

Tendency To Affiliate

The innate or acquired propensity of individuals to seek out, form, or maintain social connections and relationships with others, often heightened during periods of stress or uncertainty.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs in relationships.

Minimax Principles

Strategy in decision-making that minimizes the maximum possible loss or maximizes the minimum gain.

Comparison Level

An individual's standard or benchmark for evaluating the attractiveness and satisfaction of a relationship, based on past experiences.