Rothe Company Manufactures and Sells a Single Product That It

question 39

Multiple Choice

Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a contribution margin ratio of 35%.The company's fixed costs are $46,800.If Rothe desires a monthly target operating profit equal to 15% of sales,sales will have to be (rounded) :

• A)1,486 units.
• B)3,467 units.
• C)1,040 units.
• D)2,600 units.

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Definitions:

Strategy Formulation

The process of developing strategies to achieve organizational goals based on analysis of internal and external environments.

Organizational Structure

The manner in which an organization divides its labor into specific tasks and achieves coordination among these tasks.

Indirect Impact

The secondary or not immediately apparent effects of an action or policy, which may influence outcomes in a less direct manner.

Strategy Formulation

is the process of determining appropriate courses of action for achieving organizational objectives and overall direction.