Assume the following information: $$\begin{array} { l r }
\text { Sales price per unit } & \$ 100 \
\text { Contribution margin ratio } & 50 \% \
\text { Total fixed costs } & \$ 250,000
\end{array}$$ How many units must be sold to generate a before-tax profit of $45,000?
A) 2,500 units
B) 3,000 units
C) 3,750 units
D) 5,900 units

Question

Assume the following information: $$\begin{array} { l r } 
\text { Sales price per unit } & \$ 100 \
\text { Contribution margin ratio } & 50 \% \
\text { Total fixed costs } & \$ 250,000
\end{array}$$ How many units must be sold to generate a before-tax profit of $45,000?
A) 2,500 units
B) 3,000 units
C) 3,750 units
D) 5,900 units

Quizplus · Accepted Answer

The Answer of Assume the following information: $$\begin{array} { l r } 
\text { Sales price per unit } & \$ 100 \
\text { Contribution margin ratio } & 50 \% \
\text { Total fixed costs } & \$ 250,000
\end{array}$$ How many units must be sold to generate a before-tax profit of $45,000?
A) 2,500 units
B) 3,000 units
C) 3,750 units
D) 5,900 units

Assume the Following Information How Many Units Must Be Sold to Generate a Before-Tax