If Fixed Costs Are $400,000 and the Unit Contribution Margin

question 55

Multiple Choice

If fixed costs are $400,000 and the unit contribution margin is $20, the amount of units that must be sold in order to have a zero profit is

• A)25,000 units
• B)10,000 units
• C)400,000 units
• D)20,000 units

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Definitions:

Federal Taxes

Taxes administered and collected by the federal government on income, sales, and activities within its jurisdiction.

Paychecks

Regular payments made to employees for their work, typically on a fixed schedule.

State Directory

A comprehensive listing of government and administrative offices within a specific state, often available online.

20 Days

A specific time period consisting of twenty consecutive days.