A Product Is Priced to Sell for $12 with Average

question 36

Multiple Choice

A product is priced to sell for $12 with average variable costs of $8.The company expects to earn a profit of $400,000 with its total fixed costs of $120,000.The minimum number of units that must be sold in order to reach this target return is:

• A)400,000
• B)130,000
• C)120,000
• D)80,000

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Definitions:

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