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If a Firm Sells 40,000 Units and the Contribution Margin

Question 38

Multiple Choice

If a firm sells 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at this level of sales volume?


A) $100,000
B) $30,000
C) $15,000
D) $145,000

Correct Answer:

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