If the fixed cost is $250000, variable cost is $30 and price is $40?
Correct answer: D. 25000
- A. 40000
- B. 35000
- C. 30000
- D. 25000
Explanation
Break-even units equal fixed cost divided by contribution per unit: $250,000 ÷ ($40 − $30) = 25,000 units. The contribution margin is price minus variable cost, not the full selling price.
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