How many units would need to be sold in a period to earn a profit of $10,000?


A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.

How many units would need to be sold in a period to earn a profit of $10,000?
A . 9,000
B . 8,000
C . 36,000
D . 32,000

Answer: D

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