Multiple Choice
A product has a contribution margin of $2.50 per unit and a selling price of $25 per unit.Fixed costs are $20,000.Assuming new technology increases the unit contribution margin by 50 percent but increases total fixed costs by $13,750,what is the new break-even point in units?
A) 3,667 units
B) 3,333 units
C) 13,500 units
D) 9,000 units
Correct Answer:
Verified
Correct Answer:
Verified
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