A Product Is Sold for $45 and Has Variable Costs

question 50

Essay

A product is sold for $45 and has variable costs of $33 per unit. The total fixed costs for the firm are $180,600. If the firm desires to earn a pretax income of $77,400, how many units must be sold?

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Definitions:

Marketer

A professional who is skilled in promoting or selling products, services, or brands, using various strategies and channels to reach a target audience.

Effect Uncertainty

involves the unpredictability surrounding the consequences or outcomes of a decision or action.

State Uncertainty

The condition of not knowing the true state of a system or environment, often due to insufficient information.

Economic Uncertainty

The unpredictability in economic conditions, which can include factors such as inflation rates, employment levels, and market volatility, affecting business and investment decisions.