How Many Units Would Have to Be Sold to Yield

question 130

Multiple Choice

How many units would have to be sold to yield a target operating income of $26,000, assuming variable costs are $27 per unit, total fixed costs are $2,000, and the unit selling price is $32?

• A) 400 units
• B) 1,038 units
• C) 5,600 units
• D) 1,273 units

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Definitions:

SEC

Refers to the Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Registration Statement

A set of documents, including financial statements and a prospectus, filed with a regulatory body (like the SEC) to register a new issue of securities for sale to the public.

SEC

Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Securities and Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry.