Go for It Company Sells Go-Carts at $1,000 Each, Incurs

question 40

Multiple Choice

Go For It Company sells go-carts at $1,000 each, incurs a variable cost per unit of $600, and has a total fixed cost of $75,000. How many units must be sold to achieve a target operating income of $55,000?

• A) 215
• B) 250
• C) 325
• D) 600

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Definitions:

IPO

An Initial Public Offering (IPO) is the process through which a private company becomes publicly traded by offering its shares for sale to the public for the first time.

Prospectus

An official document that companies must publish when offering securities for sale to the public, detailing financial and other significant information.

IPO Pop

The increase in a stock's price on the first day of trading following its initial public offering (IPO), often reflecting high investor demand.

Stock Price

The current market price at which a share of stock can be bought or sold.