Gao Corp Produced 2,000,000 Units This Year, at a Variable Cost

question 69

Multiple Choice

Gao Corp. produced 2,000,000 units this year, at a variable cost of $3 per unit. Its fixed costs are $1,200,000 per year. It sold all 2,000,000 units produced at $5 per unit. Its total contribution margin for the year was

• A) Zero
• B) 2400000
• C) 2800000
• D) 4000000

---

Definitions:

Proportional

Describing a control or relationship where a change in one quantity results in a proportional change in another quantity.

Voltage

The electrical potential difference between two points in a circuit, often measured in volts.

Table

An arrangement of data made up of rows and columns, often used to organize and display information systematically.