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A Product Sells for $20 Per Unit, and Has a Contribution

Question 127

Multiple Choice

A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixed expenses total $120,000 annually. How many units must be sold to yield a profit of $30,000?


A) 12,500 units.
B) 20,000 units.
C) 18,750 units.
D) 25,000 units.

Correct Answer:

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