A Company Has an Operating Income of $20 Million and Total

question 33

Multiple Choice

A company has an operating income of $20 million and total fixed expenses of $10 million.5 million units are produced at a margin of $6 per unit.What should the margin per unit be if the company needs to achieve a break-even volume for the same number of units?

• A)$1 per unit
• B)$2 per unit
• C)$3 per unit
• D)$4 per unit
• E)$5 per unit