In Keegan Corporation's Most Recent Fiscal Year,the Company Reported Pretax

question 88

Multiple Choice

In Keegan Corporation's most recent fiscal year,the company reported pretax earnings of $215,000.Fixed costs totaled $325,800,the unit selling price of the firm's only product was $60,and the variable costs per unit were 40% of the selling price.Based on this information,the firm's break-even point in units was:

• A)13,575 units.
• B)15,023 units.
• C)13,750 units.
• D)9,050 units.
• E)8,750 units.

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Definitions:

Secondary Spermatocyte

Spermatocyte derived from a primary spermatocyte by the first meiotic division; each secondary spermatocyte gives rise by the second meiotic division to two spermatids.

Spermatid

Cell derived from the secondary spermatocyte; gives rise to a spermatozoon.

Scrotum

An external sac of skin and muscle containing the testicles in males.

Testes

Male reproductive organs that produce sperm and hormones, including testosterone.