MINI-CASE Smith Automotive Is a Company That Produces Component Parts for for Automobile

Multiple Choice

MINI-CASE
Smith Automotive is a company that produces component parts for automobile engines.A margin of $4 per unit produces fixed expenses of $80 million.The market demand for the component parts is 400 million units per year.
-Mini-Case Question.Determine the margin per unit if the company needs to sell 40 million units in order to break even.

A) $10 per unit
B) $8 per unit
C) $4 per unit
D) $2 per unit
E) $1 per unit