If a firm sells 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at this level of sales volume?

A) $100,000
B) $30,000
C) $15,000
D) $145,000


A) $100,000



Business

You might also like to view...

GTB Electronics enters a new market and needs to set its pricing strategy for the market. Which of the following is a favorable condition for implementing skim pricing?

A) There is little differentiation between competing products in the market. B) The market has many well-established competitors. C) Entry into that particular market is difficult. D) There are many substitute products available, with a wide range of prices and features. E) GTB's product position is about the same as competitors' positions in every area of product and service quality.

Business

What is ISO 9000?

What will be an ideal response?

Business

How are ethical rules established in Kantian ethics?

A) by a set of universal rules that are based on consistency and reversibility B) by following principles that have been derived from holy books C) by an individual's feelings on what is right and wrong D) by choosing the alternative that is best for society as a whole

Business

________ refers to a firm's obligation to improve its positive effects on society and reduce its negative effects.

A. Legal obligations B. The nonprofit orientation C. Social responsibility D. The micro-macro dilemma E. Marketing ethics

Business