Lilly LLC Wants to Make a Profit of $30,000

question 36

Multiple Choice

Lilly LLC wants to make a profit of $30,000.It has variable costs of $99 per unit and fixed costs of $20,000.How much must it charge per unit if 5,000 units are sold?

• A)$84
• B)$69
• C)$99
• D)$109

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Definitions:

Wind Up

The process of closing down a business, including selling assets, paying creditors, and distributing any remaining assets to owners or shareholders.

Reasonable Purpose

A principle guiding that an action or decision must align with logical or justifiable reasons often evaluated in legal contexts.

Partnership Business

A legally recognized form of business where management responsibilities and profits are divided among two or more partners.

Capital Contribution

The injection of assets by the owners or shareholders into a business for operational or investment purposes.