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A Product Sells for $200 Per Unit, and Its Variable

Question 15

Multiple Choice

A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?


A) 6,500.
B) 6,000.
C) 500.
D) 5,000.
E) 5,500.

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