If the Targeted Sales Are 12 000 Units

question 54

Multiple Choice

If the targeted sales are 12 000 units. The sales price per unit is $70, fixed costs are $130 000 and variable costs are $40 per unit, then planned profit must be:

• A) $4333.
• B) $303 333.
• C) $710 000.
• D) $230 000.

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Definitions:

Claims Against Assets

refer to the rights or legal interests that creditors, and sometimes other parties, have in a company's assets.

Management Accountant

A professional who provides financial data and analysis to decision-makers within the organization for informed management.

Tax Planning

The process of analyzing financial situations from a tax perspective, with the aim to ensure tax efficiency and compliance.

Accounting Equation

A fundamental equation in accounting that represents the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).