Chibu Corporation Is a Single Product Firm with the Following

question 124

Multiple Choice

Chibu Corporation is a single product firm with the following cost formula for all of its costs for next year, where X is the number of units sold and Y is total cost: Y = $225,000 + $30X
Chibu sells its product for $120 per unit. What would Chibu's total sales dollars have to be next year in order to generate $270,000 of net operating income?

• A)$618,750
• B)$660,000
• C)$1,080,000
• D)$1,980,000

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