A Company Has Fixed Costs of $320,000 and a Contribution

question 5

Multiple Choice

A company has fixed costs of $320,000 and a contribution margin per unit of $15.If the company wants to earn a target $40,000 pretax income,how many units must be sold (rounded to the nearest whole unit) ?

• A)24,000.
• B)21,333.
• C)18,666.
• D)2,667.
• E)20,000.

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Definitions:

Menisci

Crescent-shaped cartilaginous structures in the knee joint that distribute weight and reduce friction during movement.

Synovial Membrane

The lining of the joint spaces that secretes synovial fluid for lubrication.

Articular Cartilage

Smooth, white tissue that covers the ends of bones where they come together to form joints.

Fibrous Capsule

A dense tissue layer that encloses a joint or some organs, providing support and protection.