Assume the Following Information How Many Units Must Be Sold to Generate a Before-Tax

question 57

Multiple Choice

Assume the following information: $\begin{array}{lr}\text { Selling price per unit } & \$ 100 \\\text { Contribution margin ratio } & 50 \% \\\text { Total fixed costs } & \$ 250,000\end{array}$ How many units must be sold to generate a before-tax profit of $45,000?

• A) 2,500 units
• B) 3,000 units
• C) 3,750 units
• D) 5,900 units

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Definitions:

Part-time Workers

Individuals employed in jobs that have fewer hours than a full-time position, typically offering lower pay and fewer benefits.

Permanent Workforce

Employees who are hired on an indefinite basis, offering stability and long-term employment benefits within an organization.

Flextime Employees

Workers who have flexible work schedules, allowing them to vary their arrival and departure times as long as they complete their working hours.

Line Managers

Managers who directly contribute to producing the organization’s goods or services.