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Product a Sells for $100 Per Unit and Has a Contribution

Question 35

Multiple Choice

Product A sells for $100 per unit and has a contribution margin rate of 25%. Fixed expenses total $80 000 annually. How many units of Product A must be sold to yield a profit of $40 000?


A) 1 600
B) 4 800
C) 10 000
D) 25 000

Correct Answer:

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