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A Company Has an Operating Income of $20 Million and Total

Question 44

Multiple Choice

A company has an operating income of $20 million and total fixed expenses of $10 million.5 million units are produced at a margin of $6 per unit.What should the margin per unit be if the company needs to achieve a break-even volume for the same number of units?


A) $1 per unit
B) $2 per unit
C) $3 per unit
D) $4 per unit
E) $5 per unit

Correct Answer:

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