Wang CoManufactures and Sells a Single Product That Sells for $450

question 177

Multiple Choice

Wang Co.manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit.Annual fixed costs are $800,000.Current sales volume is $4,200,000.Management targets an annual pre-tax income of $1,125,000.
-Compute the unit sales to earn the target pre-tax net income.

• A)4,444.
• B)7,500.
• C)6,650.
• D)10,694.
• E)11,750.

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Definitions:

Percentage

A rate, number, or amount in each hundred, represented by the symbol %.

Base

The fundamental component or main ingredient in a mixture, formula, or system.

Decimal Places

The number of digits to the right of the decimal point in a number, significant in precision of measurements and calculations.

Percent Increase

The ratio of the increase in value to the original value, expressed as a percentage.