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Product a Sells for $20 Per Unit and Has a Contribution

Question 36

Multiple Choice

Product A sells for $20 per unit and has a contribution margin rate of 40%. Fixed expenses total $120 000 annually. How many units of Product A must be sold to yield a profit of $30 000?


A) 12 500
B) 18 750
C) 75 000
D) 50 000

Correct Answer:

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