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Assume That You Can Sell a New Product at $5

Question 21

Multiple Choice

Assume that you can sell a new product at $5.00 per unit. Variable costs are $3.00 per unit, and fixed costs are $20,000. What will be the profit before taxes if you sell 12,000 units next year?


A) $0
B) $2,000
C) $4,000
D) $8,000

Correct Answer:

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