A Firm with $49,000 in Fixed Costs Breaks Even on Unit

question 81

Multiple Choice

A firm with $49,000 in fixed costs breaks even on unit sales of 7,000, how many units must the firm sell to earn $30,000 in operating profits?

• A) 30,000 units
• B) 11,286 units
• C) 15,824 units
• D) There is not enough information to determine the unit sales required.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace, determined by supply and demand.

Property Taxes

Taxes paid by property owners based on the assessed value of their real estate.

Gross Income

The total income from all sources before any deductions or taxes are taken out.

Standard Deduction

A fixed amount deducted from a taxpayer's income to reduce taxable income, not requiring itemization.