Assume Total Fixed Costs of $160,000,variable Costs Per Unit of $6

question 32

Multiple Choice

Assume total fixed costs of $160,000,variable costs per unit of $6, and contribution margin per unit of $4. How many units must be sold to meet a target operating income of $50,000?

• A) 5,000
• B) 25,000
• C) 40,000
• D) 52,500

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, releasing oxygen as a byproduct.

Topsoil

The uppermost layer of soil, which is rich in organic matter and nutrients, crucial for plant growth.

Deserts

Arid regions with extremely low rainfall, characterized by scarce vegetation and diverse adaptations among the organisms that inhabit them.

Savannas

Grassland ecosystems with scattered trees, found in regions that receive a moderate amount of annual rainfall, typically bordering deserts or tropical rainforests.