If Fixed Costs Are $850,000 and the Unit Contribution Margin

question 106

Multiple Choice

If fixed costs are $850,000 and the unit contribution margin is $90, what amount of units must be sold in order to have a zero profit?

• A) 9,444 units
• B) 8,500 units
• C) 7,650 units
• D) 85,000 units

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Definitions:

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for transforming sound waves into electrical signals that the brain interprets as sound.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is crucial for sound transduction, leading to the perception of sound.

Vestibular Sac

A part of the inner ear involved in balance, helping to sense changes in head position and movement.

Auditory Canal

The part of the ear through which sound waves travel toward the eardrum, also known as the external auditory meatus.