The controller at TellCo is examining her books. She determines that at the breakeven point of 5,000 units, variable costs total $4,000 and fixed costs total $7,000. Therefore, 5,001st unit sold will contribute ________ to profits. (Round the final answer to the nearest cent.)
A) $0.80
B) $0.60
C) $1.40
D) $2.20

Question

Quizplus · Accepted Answer

Fixed costs of $7,000/5,000 units = Contribution Margin of $1.40 per unit.

The Controller at TellCo Is Examining Her Books