Product a Sells for $100 Per Unit and Has a Contribution

question 35

Multiple Choice

Product A sells for $100 per unit and has a contribution margin rate of 25%. Fixed expenses total $80 000 annually. How many units of Product A must be sold to yield a profit of $40 000?

• A) 1 600
• B) 4 800
• C) 10 000
• D) 25 000

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Definitions:

Stretch Assignments

Challenging assignments and projects that are larger in scope than one’s current job and involve more responsibility.

Same Level

Refers to elements or factors that are at an equivalent position or rank within a hierarchy or system.

Low Scope

Pertains to projects, tasks, or research that are limited in range, breadth, or extent, often focused on a narrow set of objectives.

Motivating Potential Score

A numerical measure used to predict job satisfaction, based on the degree to which a job has characteristics that enhance intrinsic motivation.