Conan Company Has Total Fixed Costs of $112,000

question 68

Multiple Choice

Conan Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Conan Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?

• A) 1,120.
• B) 8,214.
• C) 11,200.
• D) 12,320.
• E) 14,080.

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, allowing organisms to focus on changes in their environment.

Quivering Movements

Small, rapid, involuntary movements or trembling of a body part, often resulting from nervousness, excitement, or physiological conditions.

Pupil

The opening in the center of the iris of the eye, which adjusts its size to control the amount of light entering the eye.

Retina

A layer at the back of the eyeball containing cells sensitive to light, crucial for vision.