For a firm that would break even at $200 000 sales and earn a profit of $30 000 at sales of $250 000, which of the following statements is always true?
A) Fixed costs are $80 000.
B) The selling price is $2 per unit.
C) Profit at sales of $300 000 would be $80 000.
D) The contribution margin is 60 per cent of sales.
Correct Answer:
Verified
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