How Many Units Would Have to Be Sold to Yield

question 201

Multiple Choice

How many units would have to be sold to yield a target operating income of $22,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?

• A)4,800 units
• B)4,400 units
• C)4,000 units
• D)3,600 units

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Definitions:

Tendered

The act of presenting for acceptance; in legal and financial contexts, it often refers to offering payment or delivering goods as part of fulfilling a contract.

Liable

Liable refers to being legally responsible to someone else for damages or losses.

Article 6

Article 6 is a broadly used term that can reference a specific provision within a document; without additional context, its specific interpretation can vary widely.

Uniform Commercial Code

An extensive collection of statutes that regulate business dealings in the United States, designed to unify legal requirements throughout the states.