Baker Company Sells Its Product for £60

question 88

Multiple Choice

Baker Company sells its product for £60. In addition, it has a variable cost ratio of 40 percent and total fixed costs of £9,000. How many units must be sold in order to obtain a before-tax profit of £12,000?

• A) 350 units
• B) 584 units
• C) 875 units
• D) 333 units

---

Definitions:

Regression Analysis

A statistical method for examining the relationship between a dependent variable and one or more independent variables.

Index

A method or system for ordering or categorizing objects or data, often used in reference to databases, stock markets, or economic indicators.

Strength Of Association

A measure indicating the relationship's intensity between two variables, showing how closely the variables are related.

Variables

Elements or characteristics within a study that can vary and have different values among subjects.