Tilker Manufacturing Sells Its Product for $40 Per Unit

question 72

Multiple Choice

Tilker Manufacturing sells its product for $40 per unit. Last year, variable costs per unit were $15, and fixed costs were $400,000. How many units must be sold this year to earn a pre-tax profit of $45,000 if variable costs increase by 10%?

• A)27,813
• B)18,936
• C)17,021
• D)19,778

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Definitions:

Plant Cover

The layer of vegetation or plants that covers the ground in a specific area, crucial for maintaining ecosystems and influencing water and soil quality.

Erosion

Erosion is the process by which natural forces like water, wind, ice, and gravity wear away rocks and soil, transporting them from one place to another.

Angle of Repose

The sharpest incline at which a specifically loose material remains stable without collapsing.

Talus Slope

A steep slope composed of loose rock fragments, that is, talus.