A Product Sells for $210 Per Unit,and Its Variable Costs

question 102

Multiple Choice

A product sells for $210 per unit,and its variable costs per unit are $130.The fixed costs are $420,000.If the firm wants to earn $35,000 after tax income (assume a 30% tax rate) ,how many units must be sold?

• A) 6,500
• B) 6,275
• C) 500
• D) 5,875
• E) 5,500

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