Walton Reported Sales of $640,000,fixed Costs of $314,000,and a Profit

question 10

Multiple Choice

Walton reported sales of $640,000,fixed costs of $314,000,and a profit of $92,000.If the contribution margin is $8 per unit,how many units did Walton sell?

• A)11,500 units
• B)31,125 units
• C)50,750 units
• D)70,375 units

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Definitions:

Spot Rate

The current market price at which a particular asset, such as currency or commodity, can be bought or sold for immediate delivery.

Discount

A reduction applied to the regular price of goods or services or the amount by which the present value of future cash flows is reduced for discounting purposes.

Foreign Currency

Currency used in a country other than one’s own, representing a medium of exchange for goods and services in that foreign country.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specific period.