A Product Sells for $20 Per Unit and Has a Contribution

question 12

Multiple Choice

A product sells for $20 per unit and has a contribution margin ratio of 40 percent.Fixed expenses total $240,000 annually.How many units of the product must be sold to yield a profit of $60,000?

• A)37,500 units
• B)40,000 units
• C)65,000 units
• D)30,000 units

---

Definitions:

Major

The term usually refers to the most abundant or significant product, component, or outcome in a chemical reaction or process.

Structure

The arrangement or organization of something, particularly atoms in molecules or compounds in chemistry.

Reaction

The process by which one or more substances are transformed into different substances with distinct physical and chemical properties.

Organic Product(s)

Chemical compounds consisting of carbon that are produced as the outcomes of organic reactions.