If the break-even number of units are 200 units and the fixed cost is $80000, then the contribution margin per unit will be __________?
Correct answer: A. $400
- A. $400
- B. $600
- C. $800
- D. $1,000Access Government Careers
Explanation
At break-even, fixed costs equal total contribution, so contribution margin per unit is fixed costs divided by break-even units: $80,000 ÷ 200 = $400.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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