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A company produces and sells a product with the following details: • Selling Price per Unit: $80 • Variable Cost per Unit: $50 • Fixed Costs: $150,000 ⚫ Units Sold: 5,000 What is the contribution margin per unit and total contribution margin for the company? Options: A. $30 per unit; $150,000 total B. $25 per unit; $125,000 total C. $35 per unit; $175,000 total D. $30 per unit; $100,000 total

A company produces and sells a product with the following details: • Selling Price per Unit: $80 • Variable Cost per Unit: $50 • Fixed Costs: $150,000 ⚫ Units Sold: 5,000 What is the contribution margin per unit and total contribution margin for the company? Options: A. $30 per unit; $150,000 total B. $25 per unit; $125,000 total C. $35 per unit; $175,000 total D. $30 per unit; $100,000 total

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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A company produces and sells a product with the following details: • Selling Price per Unit: $80 • Variable Cost per Unit: $50 • Fixed Costs: $150,000 ⚫ Units Sold: 5,000 What is the contribution margin per unit and total contribution margin for the company? Options: A. $30 per unit; $150,000 total B. $25 per unit; $125,000 total C. $35 per unit; $175,000 total D. $30 per unit; $100,000 total
Transcribed Image Text:A company produces and sells a product with the following details: • Selling Price per Unit: $80 • Variable Cost per Unit: $50 • Fixed Costs: $150,000 ⚫ Units Sold: 5,000 What is the contribution margin per unit and total contribution margin for the company? Options: A. $30 per unit; $150,000 total B. $25 per unit; $125,000 total C. $35 per unit; $175,000 total D. $30 per unit; $100,000 total
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