A Product Sells for $210 Per Unit,and Its Variable Costs

question 102

Multiple Choice

A product sells for $210 per unit,and its variable costs per unit are $130.The fixed costs are $420,000.If the firm wants to earn $35,000 after tax income (assume a 30% tax rate) ,how many units must be sold?

• A) 6,500
• B) 6,275
• C) 500
• D) 5,875
• E) 5,500

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Definitions:

Alternative Dispute Resolution

A range of processes, such as mediation and arbitration, used to resolve conflicts outside of traditional judicial proceedings.

Conciliation

Conciliation is a conflict resolution process where a neutral third-party helps disputing parties to reconcile and reach a mutually satisfactory agreement, often through improving communication and understanding.

Arbitration

A form of dispute resolution where a neutral third party makes a binding decision to resolve a conflict between parties.

Facilitation

The process of making something easier or less difficult to do or achieve.