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Management · Q257

Management Accounting

Graduate and Post Graduate · Management · question 257

Q257

If contribution margin per unit is 700 per unit and break-even per unit is 40, then fixed cost would be

A.
$35,000
B.
$28,000
Answer
C.
$17,500
D.
$82,000

Answer: Option B

Solution

Answer: Option B
Solution:
Fixed cost = Contribution margin per unit × Break-even per unit
= 40 = $28,000.