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If a Company Has Fixed Costs of $40,000, a Unit

Question 153

Multiple Choice

If a company has fixed costs of $40,000, a unit selling price of $12, and variable costs of $4 per unit, how many units will it have to sell to make a profit of $20,000?


A) 5,000 units
B) 2,500 units
C) 3,600 units
D) 7,500 units

Correct Answer:

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