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

question 82

Multiple Choice

Assume the following information: $$\begin{array} { l r } \text { Sales price per unit } & \$ 100 \\\text { Contribution margin ratio } & 50 \% \\\text { Total fixed costs } & \$ 250,000\end{array}$$ 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:

False Positive

An error in data testing in which a test result improperly indicates the presence of a condition (such as a disease when it is not present).

Expected Gain

The anticipated value or profit that results from a particular action or decision, often calculated in statistical or financial models.

False Negative

An error in test results in which a positive condition is incorrectly reported as negative.

Discrete Probability Distribution

A statistical distribution that shows the probabilities of outcomes with distinct values.