Falls Company Has a Contribution Margin of $32 Per Unit

question 70

Multiple Choice

Falls Company has a contribution margin of $32 per unit and fixed costs of $500,000,and it desires to earn a profit of $100,000.What is the sales volume in units required to achieve this desired profit?

• A) 3,125 units
• B) 18,750 units
• C) 15,625 units
• D) 12,500 units

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Definitions:

NADH

Nicotinamide adenine dinucleotide (reduced form) is a coenzyme involved in redox reactions, carrying electrons from one reaction to another in metabolic processes.

Citric Acid Cycle

A process where aerobic organisms produce energy by oxidizing acetate from carbohydrates, fats, and proteins into carbon dioxide through a sequence of chemical reactions.

Protein Molecules

Large biomolecules comprised of amino acids, essential for various biological functions including catalysis, structure, and regulation.

Amino Acids

Organic compounds that combine to form proteins and are used by organisms for growth, repair, and maintenance of body tissues.