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Solnce55 [7]
3 years ago
10

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
Business
1 answer:
ruslelena [56]3 years ago
6 0

Answer:

A 6,500

Explanation:

The number of units to be sold is calculated as;

= (Pretax income + Fixed costs) ÷ Contribution margin

Given that;

Pretax income = $35,000

Fixed costs = $420,000

Contribution margin

= Selling price per unit - Variable cost per unit

= $200 - $130

= $70

= ($35,000 + $420,000) ÷ $70

= 6,500 units

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Answer:

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The importance of connecting pay to performance is a suitable topic when discussing ethics. A lot of companies do not link pay to ethical behavior but pay is based on entitlement and custom.

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What would be the best action for someone who is spending more than she is earning?
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makkiz [27]

Answer:

$142,083

Explanation:

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3 years ago
Read 2 more answers
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