Fusion Inc

question 72

Multiple Choice

Fusion Inc.sells a single product which has a contribution margin of $125 per unit.The fixed cost of Fusion is $195,000.If the company wants to earn $55,000 as operating income,it should sell:

• A)2,000 units.
• B)1,560 units.
• C)440 units.
• D)2,500 units.

---

Definitions:

Expected Price Level

The forecasted average price across all goods and services in an economy, reflecting the expected general price environment.

Long-Run Aggregate-Supply

The total quantity of goods and services that producers in an economy are willing and able to supply at a full employment level, without any changes in the price level over the long term.

Short Run Aggregate Supply

The total supply of goods and services that businesses in an economy plan on selling during a short time period, assuming that the prices of resources do not change.

Price Level

A mean value of present prices for all goods and services in the economy, indicating the level of inflation or deflation.