The Pierson Co

question 108

Multiple Choice

The Pierson Co. has the following unit and mix data: Do Dah Total
Unit sales price $5.00 $4.00
Unit contribution margin 0.75 1.20
Sales mix ($) 80% 20%
Fixed costs $99,000
Target profit 24,750
How many units of Dah must be sold at the breakeven point?

• A)75,000
• B)27,500
• C)37,500
• D)55,000

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Definitions:

Provision

A specified amount set aside for future expenses or reductions in asset value, typically used in accounting and financial reporting.

Public Good

This refers to goods or services distributed to all societal members at no cost, courtesy of either public institutions or nonprofit private entities.

Private Sector

Part of the economy that is run by individuals and companies for profit and is not under direct state control.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a business with the aim of making a profit.