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A Company Has Fixed Costs of $320,000 and a Contribution

Question 232

Multiple Choice

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


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

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