A Product Has a Contribution Margin of $2

question 23

Multiple Choice

A product has a contribution margin of $2.50 per unit and a selling price of $25 per unit.Fixed costs are $20,000.Assuming new technology increases the unit contribution margin by 50 percent but increases total fixed costs by $13,750,what is the new break-even point in units?

• A) 3,667 units
• B) 3,333 units
• C) 13,500 units
• D) 9,000 units

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Definitions:

Deviant Group

A collection of individuals who deviate from societal norms or values, often resulting in societal judgment or sanction.

Complete Participant

A researcher fully participates in the social setting under study without revealing their research intentions.

Covert Observation

Observation in a research context where the subject is unaware they are being observed, to ensure natural behavior is recorded.

Overt Observation

A research method where the subjects are aware that they are being observed, which can impact their behavior but also adheres to ethical transparency.