During the Past Year a Company Had Total Fixed Costs

question 102

Multiple Choice

During the past year a company had total fixed costs of $700,000. Its product sold for $93 per unit. Variable costs during this time equaled $45 per unit. Next year the company is anticipating a 10% increase in total fixed costs and a $3 per unit decrease in variable costs, but would like to maintain its current selling price per unit. How many units must the company sell next year to earn $1,000,000? (Round answer to complete units.)

• A) 19,608
• B) 34,706
• C) 36,875
• D) 20,833
• E) 19,033

---

Definitions:

Operant Model

A theory of learning that describes the change in behavior as a result of the consequences of that behavior, whether rewards (reinforcers) or punishments.

Discrimination

The ability to distinguish between different stimuli or the unfair treatment of individuals based on group membership such as race, gender, or ethnicity.

Daily Feedback

Continuous or regular comments provided on a daily basis to improve or guide performance.

Goal Setting

The process of identifying something that you want to accomplish and establishing measurable goals and timeframes.