Q 58

MINI-CASE Smith Automotive is a company that produces component parts for automobile engines.A margin of $4 per unit produces fixed expenses of $80 million.The market demand for the component parts is 400 million units per year. -Mini-Case Question.Determine the required volume if the company's operating income is $20 million. A)10 million units B)20 million units C)25 million units D)30 million units E)35 million units

Multiple Choice