A Company Has Total Fixed Costs of $200,000

question 244

Essay

A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company has a target pre-tax income of $50,000. How many units must be sold to achieve this pre-tax target income?

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Definitions:

Greenough

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American Founder

One of the key figures in the founding of the United States of America, including signatories of the Declaration of Independence or framers of the Constitution.

God Zeus

In Greek mythology, Zeus is the king of the gods, ruler of Mount Olympus, and god of the sky, weather, thunder, law, order, and justice.

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