If the breakeven volume is 20000 units, difference of price and variable cost is $15 then the fixed cost is?
Correct answer: B. $300,000
- A. $600,000
- B. $300,000
- C. $400,000
- D. $500,000
Explanation
At break-even, fixed cost equals break-even volume multiplied by unit contribution: 20,000 × $15 = $300,000. The unit contribution is price minus variable cost.
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