If Fixed Costs Are $80,000, the Contribution Margin Is $25

question 3

Multiple Choice

If fixed costs are $80,000, the contribution margin is $25 per unit, and the targeted profit is $30,000, then the required unit sales are

• A) 4,400 units.
• B) 2,000 units.
• C) 4,500 units.
• D) 2,500 units.

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Definitions:

Prothrombin

A protein produced by the liver and converted into thrombin during blood clotting. Its activity is essential for coagulation.

Colorectal Cancer

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A condition characterized by a deficiency of red blood cells or hemoglobin, leading to fatigue, weakness, and shortness of breath.

Cathartic

Relating to the process of emotional release and purification, often described in the context of art or therapy; also refers to substances that induce the evacuation of the bowels.