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

Question 83

Multiple Choice

A product sells for $20 per unit and has a contribution margin ratio of 40%.Fixed expenses total $240,000 annually.How many units of the product must be sold to yield an operating income of $60,000?


A) 37,500 units.
B) 40,000 units.
C) 65,000 units.
D) 30,000 units.

Correct Answer:

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