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Perfect Fit Company Sells Hand-Sewn Shirts for $40 Per Shirt

Question 95

Multiple Choice

Perfect Fit Company sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $5,000. The contribution margin ratio is calculated to be 20%. What is the breakeven point in units?


A) 950 units
B) 1,750 units
C) 1,125 units
D) 625 units

Correct Answer:

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