MC Qu. 90 Locus Company has total fixed costs... Locus Company has total fixed costs of $117,000. Its product sells for $51 per unit and variable costs amount to $26 per unit. Next year Locus Company wishes to earn a pretax income that equals 50% of fixed costs. How many units must be sold to achieve this target income level?

The correct answer is 7,020 units.

Explanation:

According to the scenario, the computation of the given data are as follows:

Fixed cost = $117,000

Selling price = $51

Variable cost = $26

Pretax income to earn = 50% of fixed cost

So, Pretax income = 50% × $117,000 = $58,500

So, we can calculate the units required by using following formula:

Units required = (Total fixed costs + Pretax income) ÷ (Selling price - variable cost)

= ($117,000 + $58,500) ÷ ( $51 - $26)

= 7,020 units.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know