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Contessa Corporation Has Fixed Expenses of $200,000,and a Unit Sales

Question 117

Multiple Choice

Contessa Corporation has fixed expenses of $200,000,and a unit sales price of $70.Its variable cost per unit is $50.If it sells 8,500 posters,its operating income is a


A) gain of $820,000.
B) loss of $30,000.
C) gain of $370,000.
D) gain of $225,000.

Correct Answer:

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