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qid 549 · business

Question: A company wants a 20 percent return on investment before taxes at a sales volume equal to 80 percent of capacity. Fixed annual costs are $200,000 and the annual capacity is 200,00 units. If the variable cost per unit is $9 and the company investment is $1,400,000, what should be the selling price per unit given that production and sales are 80 percent of capacity?

  1. $15
  2. $18
  3. $13
  4. $17
  5. $19
  6. $11
  7. $12
  8. $10
  9. $16
  10. $14

Our answer: G. $12 Source quote machine-checked (exact quote)

A machine check confirms the quoted words appear at the source. A person has not yet reviewed these. EARN MARKS as a Human Reviewer

How it was answered

Stored formula / worked method, replayed by code

Target ROI absorption pricing under capacity utilization constraints

card: formula · card sha256 4041314784821375…

Current source

OpenStax, Principles of Accounting Vol. 2: Managerial Accounting, Section 3.2

https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars

“Thus, you can always find the break-even point (or a desired profit) in units and then convert it to sales by multiplying by the selling price per unit.”

Source quote machine-checked (exact quote)

retrieved 2026-09-18T00:09:53.766Z

page text sha256 f7ffe5ca655533bb… · content sha256 6d09f70e2adafa9e…

addendum formula_qid549.formula_ADDENDUM_source_rs20260918T000953Z · sha256 7a1123f26476f93f… · replaces the version below, addendum sha256 77b6c8b4fe9070c4…

Earlier version (superseded)

https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars

Source weak (http_get_200_text_and_question_terms)

retrieved 2026-09-17T00:31:57.384Z

page text sha256 d92a2805435226c8… · content sha256 —

addendum formula_qid549.formula_ADDENDUM_source_relabel_unverified20260917T012453Z · sha256 77b6c8b4fe9070c4… · replaces the version below, addendum sha256 4c734cf491faebbc…

Earlier version (superseded)

https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars

Source weak (http_get_200_text_and_question_terms)

retrieved 2026-09-17T00:31:57.384Z

page text sha256 d92a2805435226c8… · content sha256 —

addendum formula_qid549.formula_ADDENDUM_source_bf20260917T003157Z · sha256 4c734cf491faebbc… · replaces the version below, addendum sha256 1db2a7e5961d945e…

Earlier version (superseded)

No public source has been found for this card yet (3 places checked internally).

addendum formula_qid549.formula_ADDENDUM_source · sha256 1db2a7e5961d945e…

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