Phan Company Has Not Reported a Profit in Five Years

question 122

Multiple Choice

Phan Company has not reported a profit in five years.This year the company would like to narrow its loss to $7,500.Assuming its selling price is $36.50 per unit and its variable costs per unit are $24,how many units must be sold to achieve its target given that total fixed costs are $60,000?

• A) 2,188
• B) 1,439
• C) 4,200
• D) 1,600

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Definitions:

Monitor

A device or individual that observes, checks, and keeps a continuous record of a process or situation.

Appropriate Action

The decision or behavior deemed suitable for a specific situation or context, especially relating to leadership or management.

Organizational Culture

The set of shared values, beliefs, behaviours, and norms that define an organization, influencing how people interact and work together.

Authoritarian Decision Making

A leadership approach where decisions are made unilaterally by those in power, with little to no input from subordinates.