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On Fire Company, a Producer of Salsa, Has the Following

Question 145

Multiple Choice

On Fire Company, a producer of salsa, has the following information:  Income tax rate 30% Selling pric e per unit $5.00 Variable cost p er unit $3.00 Total fixed costs $90,000.00\begin{array} { l l } \text { Income tax rate } & 30 \% \\\text { Selling pric e per unit } & \$ 5.00 \\\text { Variable cost p er unit } & \$ 3.00 \\\text { Total fixed costs } & \$ 90,000.00\end{array} The contribution margin per unit is:


A) $3.00
B) $8.00
C) $2.00
D) $5.00

Correct Answer:

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