A Company Has an Operating Income of $20 Million and Total

Multiple Choice

A company has an operating income of $20 million and total fixed expenses of $10 million.5 million units are produced at a margin of $6 per unit.What should the margin per unit be if the company needs to achieve a break-even volume for the same number of units?

A) $1 per unit
B) $2 per unit
C) $3 per unit
D) $4 per unit
E) $5 per unit