A Company Has Fixed Costs of $270,000,a Unit Contribution Margin

question 38

Multiple Choice

A company has fixed costs of $270,000,a unit contribution margin of $14,and a contribution margin ratio of 55%.If the company wants to earn a target $60,000 pretax income,what amount of sales must it make (rounded to the nearest whole dollar) ?

• A)490,909.
• B)330,000.
• C)109,090.
• D)381,818.
• E)600,000.

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Definitions:

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders, particularly severe depression.

Severe Depression

A form of depression that is more intense and persistent, leading to significant impairments in daily functioning.

Somatoform Disorders

Somatoform Disorders are a group of psychological conditions where a person experiences physical symptoms that have no identifiable physical cause, suggesting that they may be linked to mental health factors.

Transcranial Direct Current Stimulation

A form of neurostimulation that uses constant, low current delivered directly to the brain area via electrodes on the scalp.