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:

Marketing Mix

A set of controllable marketing tools (Product, Price, Place, Promotion) that a company uses to produce a desired response in the target market.

Internet-based Applications

Software programs that run on the Internet rather than being downloaded and installed on a single device.

User-generated Content

Content created and shared by consumers or users of a platform or service, rather than by the platform or brand itself.

Marketing Analytics

The practice of measuring, managing, and analyzing marketing performance to maximize effectiveness and optimize return on investment (ROI).