Zeus,IncProduces a Product That Has a Variable Cost of $9

question 64

Multiple Choice

Zeus,Inc.produces a product that has a variable cost of $9.50 per unit.The company's fixed costs are $40,000.The product sells for $12.00 a unit and the company desires to earn a $20,000 profit.What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.)

• A) 24,000 units
• B) 16,000 units
• C) 17,000 units
• D) 4,000 units

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Definitions:

Loanable Funds

The money available in the banking system for lending to businesses or consumers, influenced by interest rates and monetary policy.

Demand for Loanable Funds

The Demand for Loanable Funds represents the relationship between the interest rate and the total amount of loans that borrowers are willing to take at that rate.

Technological Advance

The introduction of new technologies or the improvement of existing ones, enhancing productivity and efficiency.

Economic Expansion

A phase of the business cycle where there is an increase in economic activity, marked by rising GDP, employment, and income levels.