Helium Company Has the Following Information Available How Many Units Must Be Sold to Achieve the Targeted

question 43

Multiple Choice

Helium Company has the following information available:
$\begin{array}{ll}\text { Selling price per unit } & \$ 5.00 \\\text { Variable cost per unit } & \$ 3.50\\\text { Total fixed costs }&\$90,000.00\\\text { Targeted net income }&\$30,000.00\end{array}$
How many units must be sold to achieve the targeted net income?

• A) 10,000 units
• B) 27,000 units
• C) 45,000 units
• D) 80,000 units

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Definitions:

Consumer Spending

The total value of goods and services purchased by households over a period of time, contributing to the overall economic activity.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, as an indicator of inflation.

Consumer Price Index

A gauge that determines the aggregate weighted cost of various consumer goods and services, such as healthcare, food, and transportation, for the purpose of estimating inflation figures.

Substitution Bias

The phenomenon where consumers change their preferences to buy cheaper alternatives as prices rise, which can lead to inaccuracies in measuring inflation.