A Firm Produces and Sells a Product with a Contribution

question 204

Essay

A firm produces and sells a product with a contribution margin of $32 per unit. The firm is presently selling 90,000 units and earning $320,000 in pre-tax income. If the firm desires to increase its pre-tax income to $ 400,000, how many more units must it sell?

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Definitions:

Implementing Policy

The process of applying and executing plans, rules, or procedures designed to achieve organizational objectives.

Organizational Structure

This describes the system that outlines how certain activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Workflow

The sequence of industrial, administrative, or other processes through which a piece of work passes from initiation to completion.

Need for Affiliation

An individual's desire to form connections with others or be part of a group, driven by social or psychological needs.