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If Fixed Costs Are $500,000, Selling Price Is $10/unit, Variable

Question 15

Multiple Choice

If fixed costs are $500,000, selling price is $10/unit, variable cost is $4/unit, and the firm wants a 10 percent ROE on $1,000,000 in equity, then the breakeven in units will be


A) 25,000
B) 150,000
C) 100,000
D) None of the above

Correct Answer:

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