Product X Sells for $20 Per Unit and Has a Contribution

question 32

Multiple Choice

Product X sells for $20 per unit and has a contribution margin rate of 40 percent. Fixed expenses total $120 000 annually. How many units of Product X must be sold to yield a profit of $30 000?

• A) 12 500
• B) 18 750
• C) 75 000
• D) 250 000

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Definitions:

Preferences

Individual choices or priorities regarding products, services, or outcomes based on factors like taste, convenience, and value.

Quantity Supplied

The specific amount of a good or service that producers are willing and able to sell at a particular price.

Tanning Salon

A specialized establishment that provides indoor tanning services through the use of tanning beds or tanning booths.

Sessions

Periods of time dedicated to specific activities, such as meetings, legislative activities, or academic classes.