Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?
A. 8,214.
B. 14,080.
C. 12,320.
D. 1,120.
E. 11,200.
Answer: C
You might also like to view...
The Resource Conservation and Recovery Act (RCRA) empowers the federal government, not the states, with the authority to regulate facilities that generate, treat, store, and dispose of hazardous waste.
Answer the following statement true (T) or false (F)
Which tactic for influencing others can be described as an effort to win favor and the good graces of others before making a request?
What will be an ideal response?
Describe common stockholder rights
Grant Company reported the following on its income statement: Income before income taxes $420,000 Income tax expense 120,000 Net income $300,000 An analysis of the income statement revealed that interest expense was $60,000. Grant Company's times interest earned was
A) 8 times B) 7 times C) 6 times D) 5 times