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:

Unethical Behaviour

Actions or practices within an organisation or individual that are immoral, dishonest, or violate professional standards.

Longer Term Implications

Consequences or effects of actions or decisions that become apparent or have an impact over an extended period.

Organisational Loyalty

The commitment of employees to the goals, values, and success of their organization, often resulting in higher productivity and job satisfaction.

Expense Report

A financial document that details the expenditures incurred during business operations or activities.