Falls Company Has a Contribution Margin of $32 Per Unit

question 70

Multiple Choice

Falls Company has a contribution margin of $32 per unit and fixed costs of $500,000,and it desires to earn a profit of $100,000.What is the sales volume in units required to achieve this desired profit?

• A) 3,125 units
• B) 18,750 units
• C) 15,625 units
• D) 12,500 units

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Definitions:

Tertiary Circular Reactions

describe a stage in Piaget's theory of cognitive development where infants (12-18 months) experiment with new behaviors to see the outcomes, demonstrating an early form of problem-solving.

Primary Circular Reactions

Early infantile behaviors that are repetitive and centered around the body, forming the basis for the development of more complex skills.

Simple Reflexes

Basic, involuntary motor responses to specific stimuli, evident in human behavior from an early age.

Secondary Circular Reactions

A developmental stage in infants, usually between 4 to 8 months, characterized by the repetition of actions that produce an effect on the environment, signaling the beginning of intentional behavior.