A Product Sells for $125, Variable Costs Are $80, and Fixed

question 89

Multiple Choice

A product sells for $125, variable costs are $80, and fixed costs are $45,000. If the selling price can be increased by 20% with a similar increase in variable costs, how many less units would have to be sold to earn $300,000?

• A) 5,595 units.
• B) 7,667 units.
• C) 1,278 units.
• D) 6,389 units.

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Definitions:

Budget

An estimation of income and expenditure for a set period of time, often used for planning and controlling financial resources.

Recruitment Method

Strategies or techniques used by organizations to find and attract candidates for employment.

ESDC

Employment and Social Development Canada, a department of the Canadian government responsible for programs related to employment, labour, and social development.

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A database or platform listing available job vacancies, often organized by sector, location, or job type.