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    Financial and Managerial Accounting Study Set 1
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    Exam 18: Cost Behavior and Cost-Volume-Profit Analysis
  5. Question
    A Company Has Fixed Costs of $320,000 and a Contribution
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A Company Has Fixed Costs of $320,000 and a Contribution

Question 5

Question 5

Multiple Choice

A company has fixed costs of $320,000 and a contribution margin per unit of $15.If the company wants to earn a target $40,000 pretax income,how many units must be sold (rounded to the nearest whole unit) ?


A) 24,000.
B) 21,333.
C) 18,666.
D) 2,667.
E) 20,000.

Correct Answer:

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