Johnson's Plumbing's Fixed Costs Are $700,000 and the Unit Contribution

question 223

Multiple Choice

Johnson's Plumbing's fixed costs are $700,000 and the unit contribution margin is $17.What amount of units must be sold in order to realize an operating income of $100,000?

• A) 5,000
• B) 41,176
• C) 47,059
• D) 58,882

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Definitions:

Fate

The development of events beyond a person's control, regarded as predetermined by a supernatural power.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Crowded

Characterized by a high density of people or objects in a particular area, often leading to a sense of limited space.

Type A Personality

A behavior pattern characterized by competitiveness, urgency, aggression, and a constant struggle to achieve more in less time.