Harding Corporation Sells Two Products,Standard and Supreme

question 124

Multiple Choice

Harding Corporation sells two products,Standard and Supreme.Expected sales are 40,000 Standard and 60,000 Supreme.Standard's unit contribution margin is $30 and Supreme’s is $60. Fixed expenses are $1,800,000. How many Standard units would Harding sell at the break-even point?

• A)15,000
• B)20,000
• C)22,500
• D)40,000

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Definitions:

Excess Reserves

Bank reserves in excess of the required minimum, which can be lent out or invested.

Total Reserves

The sum of all deposits, including cash, bank deposits, and investable assets, held by a financial institution or country.

Required Reserves

The minimum amount of reserves a bank must hold, as mandated by regulatory bodies, based on a percentage of the bank's deposit liabilities.

Money Supply

The total quantity of money available in the economy at a given time, including currency, deposits, and other liquid assets.