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:

Customer Relationship Management

A strategy for managing a company’s interactions with current and future customers, often using data analysis to study large amounts of information.

Industrial Cleaning Products

Chemicals and equipment designed for cleaning operations in factories, warehouses, and other industrial settings.

Value Cocreation

The collaborative process between companies and customers where both parties work together to create better products, services, or experiences.

Major Business Function

Core activities carried out within an organization that are essential to its operation, such as marketing, finance, human resources, and production.