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Management · Q238

Management Accounting

Graduate and Post Graduate · Management · question 238

Q238

Contribution margin per unit is 500 per unit and breakeven per unit is 35, then fixed cost would be

A.
$13,500
B.
$14,280
C.
$18,500
D.
$17,500
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Fixed cost = Contribution margin per unit × Breakeven per unit
= 35 = $17,500.