Huston Company Has Annual Fixed Costs Totaling $3,000,000 and Variable

question 54

Multiple Choice

Huston Company has annual fixed costs totaling $3,000,000 and variable costs of $450 per unit.Each unit of product is sold for $850.Assume a tax rate of 30 percent.How many units must be sold to earn an annual profit of $210,000 after taxes?

• A)8,250
• B)4,586
• C)9,250
• D)8,025
• E)None of the answer choices is correct.

---

Definitions:

Financial Manager

A professional responsible for the financial health of an organization, involving financial planning, management of financial risks, and financial report analysis.

Marketable Securities

Financial instruments that can be easily bought or sold on public exchanges or markets due to their high liquidity and short-term maturity.

Liquid Investments

Assets that can be easily converted into cash with minimal loss in value, ensuring quick accessibility of funds when needed.

Administrative Reason

A justification or explanation based on the requirements or procedures of management or bureaucracy.