A Product Sells for $200 Per Unit, and Its Variable

question 15

Multiple Choice

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?

• A) 6,500.
• B) 6,000.
• C) 500.
• D) 5,000.
• E) 5,500.

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Definitions:

Holistic Thinking

An approach that seeks understanding by viewing problems or systems as whole entities rather than breaking them down into parts.

Complex Issues

Problems or situations that are intricate, involving multiple factors, variables, or perspectives, making them difficult to understand or resolve.

Stakeholder Interests

The concerns, objectives, or needs of individuals or groups that have an investment, share, or interest in an organization or project.

Ethical Leaders

Individuals in positions of authority who demonstrate and promote high standards of ethical behavior and decision-making in their organizations.