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

question 46

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 firm wants to earn a target $60,000 pretax income, what amount of sales must the company make (rounded to the nearest whole dollar) ?

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

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Definitions:

Ideal Self

The perception of what one should be or would like to be, often serving as motivation for change in behavior or pursuit of goals.

Real Self

An individual’s authentic identity and personality, including their thoughts, feelings, and behaviors, as opposed to how they may present themselves to others.

Self-image

An individual's conception or mental image of themselves, influencing their confidence, behavior, and interactions with others.

Physical Space

The tangible and measurable area within a structure or environment, defined by dimensions and boundaries.