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Lumos Company Sells a Single Product for $8 Per Unit

Question 12

Multiple Choice

Lumos Company sells a single product for $8 per unit. Variable costs are $5 per unit and fixed costs are $36,000.
How many units must Lumos sell to earn $18,000 before income tax?


A) 6,750
B) 12,000
C) 10,800
D) 18,000
E) None of the above

Correct Answer:

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