A firm sells a single product for $8. Its variable cost per unit is $5 and fixed costs are $90. Ignoring income taxes, the number of units that it needs to sell for a 12.5% net profit margin is Select one: a. 30 units. b. 240 units. c. 45 units. d. 360 units.

A firm sells a single product for $8. Its variable cost per unit is $5 and fixed costs are $90. Ignoring income taxes, the number of units that it needs to sell for a 12.5% net profit margin is Select one: a. 30 units. b. 240 units. c. 45 units. d. 360 units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A firm sells a single product for $8. Its variable cost per unit is $5 and fixed costs are $90. Ignoring income taxes, the number of units that it needs to sell for a 12.5% net profit margin is

Select one:

a. 30 units.

b. 240 units.

c. 45 units.

d. 360 units.

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