If Fixed Costs Are $650,000 and the Unit Contribution Margin

question 195

True/False

If fixed costs are $650,000 and the unit contribution margin is $30, the sales necessary to earn an operating income of $30,000 are 14,000 units.

---

Definitions:

Japanese Automobile

A car manufactured by a company based in Japan, known for reliability, efficiency, and advanced technology.

Canadian Dollars

The currency of Canada, represented by the symbol CAD, and used throughout the country for financial transactions.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Appreciate

The increase in value of an asset over time.