A Product Sells for $200 Per Unit, and Its Variable

question 15

Multiple Choice

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?

• A) 6,500.
• B) 6,000.
• C) 500.
• D) 5,000.
• E) 5,500.

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Definitions:

Preparation

The act of getting ready or making something ready for a specific purpose, event, or activity.

Transtheoretical Model

A psychological framework that analyzes an individual's readiness to change and identifies stages of change to address a variety of behaviors.

Problem-Focused Coping

Coping mechanisms that aim directly at mitigating or solving a stressor rather than solely managing emotional responses to the stressor.

Emotion-Focused Coping

A coping strategy that involves managing or reducing the emotional distress associated with a situation.