Question: A product sells for $280 per unit, and its variable costs per unit are $205. The fixed costs are $436,000. If the firm wants to

A product sells for $280 per unit, and its variable costs per unit are $205. The fixed costs are $436,000. If the firm wants to earn $63,500 pretax income, how many units must be sold?

Multiple Choice

  • a) 6,860.

  • b) 6,760.

  • c) 6,960.

  • d) 7,060.

  • e) 6,660.

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