During the Past Year a Company Had Total Fixed Costs

question 159

Multiple Choice

During the past year a company had total fixed costs of $700,000.Its product sold for $93 per unit.Variable costs during this time equaled $45 per unit.Next year the company is anticipating a 10% increase in total fixed costs and a $3 per unit decrease in variable costs but would like to maintain its current selling price per unit.How many units must the company sell next year to earn $1 million? (Round answer to complete units.)

• A) 19,608
• B) 34,706
• C) 36,875
• D) 20,833
• E) 19,033

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Definitions:

Referent Power

A form of power that stems from personal attributes and the respect or admiration one commands from others.

Organizational Politics

The use of power, negotiation, and alliances within an organization to achieve personal or organizational goals.

Self-Interests

The consideration of one's personal advantage or profit, often without regard for others.

Vision

A clear, inspiring, long-term desired change resulting from an organization or individual's effort.