If the change in variable costing in operating income is $9000 and contribution margin per unit is $6000, then change in sold units would be __________?
Correct answer: B. $1.5 per unit
- A. $2.5 per unit
- B. $1.5 per unit
- C. $3.5 per unit
- D. $5.5 per unit
Explanation
The change in units sold equals the change in operating income divided by contribution margin per unit: $9,000 ÷ $6,000 = 1.5 units. Option b states this result, despite the unnecessary “per unit” wording.
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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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