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Management · Q246

Management Accounting

Graduate and Post Graduate · Management · question 246

Q246

If break-even number of units are 120 units and fixed cost is 62000, then contribution margin per unit will be

A.
$74,400
B.
$7,440,000
C.
$516.67
Answer
D.
$51,667

Answer: Option C

Solution

Answer: Option C
Solution:
Contribution margin per unit = Fixed cost ÷ Break-even number of units
= 516.67.
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