A product sells for $200 per unit and its variable costs per unit are $130. Total fixed costs are $420,000. If the firm wants to earn a $35,000 target pretax income, how many units must be sold? Select one:
A product sells for $200 per unit and its variable costs per unit are $130. Total fixed costs are $420,000. If the firm wants to earn a $35,000 target pretax income, how many units must be sold? Select one:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A product sells for $200 per unit and its variable costs per unit are $130. Total fixed costs are $420,000. If the firm wants to earn a $35,000 target pretax income, how many units must be sold?
Select one:
6,500 units.
O b.
5,000 units.
O c. 6,000 units.
O d. 500 units.
O e. 5,500 units.
O a.
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