Sky High Sells Helicopters

question 195

Multiple Choice

Sky High sells helicopters.During the current year,100 helicopters were sold resulting in $820,000 of sales revenue,$250,000 of variable costs,and $342,000 of fixed costs.The number of helicopters that must be sold to achieve $300,000 of operating income is ________.

• A) 113 units
• B) 102 units
• C) 96 units
• D) 100 units

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Definitions:

Closed Economy

An economic system that does not engage in international trade with outside countries and relies wholly on its own resources.

Loanable Funds

The funds available for borrowing in the financial markets, consisting of savings and sometimes bank loans that are available to be lent to businesses and individuals.

Interest Rate

The rate at which borrowers are charged for accessing assets, specified as a percentage of the original sum borrowed.

Desired Saving

The portion of income that households choose to save rather than spend on consumption.