Contemporary Corp

Multiple Choice

Contemporary Corp. sells a single product for $80. Variable costs are 40%% of the selling price, and the company has fixed costs that amount to $500,000. Current sales total 18,000 units. Each unit that Contemporary sells will:

A) contribute to overall profitability by $20.
B) contribute to overall profitability by $32.
C) contribute to overall profitability by $48.
D) contribute to overall profitability by $28.
E) contribute to overall profitability by some other amount.