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XYZ Makes One Product Which It Sells for £100 Per

Question 3

Multiple Choice

XYZ makes one product which it sells for £100 per unit. Annual sales are 4,000 units. Break-even point is 2,000 units and total annual fixed costs are £120,000. What is the variable cost per unit of production and sales?


A) £30
B) £40
C) £60
D) £70

Correct Answer:

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