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

question 181

Multiple Choice

A product sells for $200 per unit,and its variable costs per unit are $130.Total 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:

Extrinsic Factors

External influences on behavior, performance, or outcomes in various contexts, including environmental, social, and economic factors.

Motivated

Having the desire or willingness to do something; driven by internal or external factors.

Confidence

A feeling of self-assurance arising from an appreciation of one's own abilities or qualities.

Free Will

The concept that humans have the capacity to make choices that are not pre-determined by past events, genetics, or current environmental factors.