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A Company Has Total Fixed Cost of $400,000

Question 137

Multiple Choice

A company has total fixed cost of $400,000. Its fixed- cost contribution per unit is $10.00, and its price per unit is $5.00. What is the break-even point in sales dollars?


A) $200,000.
B) $2,000,000.
C) $4,000,000.
D) $800,000.
E) Cannot be determined from the information provided.

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