A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If the firm has a 25% income tax rate, the number of units that it needs to sell for $30 net income is Select one: a. 288 units. b. 30 units. c. 24 units. d.32 units

A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If the firm has a 25% income tax rate, the number of units that it needs to sell for $30 net income is Select one: a. 288 units. b. 30 units. c. 24 units. d.32 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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If the firm has a 25% income tax rate, the number of units that it needs to sell for $30 net income is

Select one:

a. 288 units.

b. 30 units.

c. 24 units.

d.32 units

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