If Selling Price Is $25, Unit Contribution Margin Equals $15

question 35

Multiple Choice

If selling price is $25, unit contribution margin equals $15 and fixed costs are $12,000, then breakeven volume is:

• A)300 units.
• B)1,200 units.
• C)800 units.
• D)2,500 units.
• E)1,500 units.

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Definitions:

Two-transaction Approach

An accounting method where a transaction is considered to involve two separate events that are recorded independently.

Two-transaction Theory

A concept in accounting that proposes a business transaction affects two or more accounts in the ledger, which is fundamental to the double-entry bookkeeping system.

Exchange Gains

Profits earned from the favorable movement of currency exchange rates that impact the value of foreign currency transactions.

Net Income

is the total profit or loss of a company after all revenues, expenses, taxes, and dividends are accounted for, over a specific period.