Fuschia Company's Contribution Margin Per Unit Is $12

question 8

Multiple Choice

Fuschia Company's contribution margin per unit is $12.Total fixed costs are $84,000.What is Fuschia's break-even point in units?

• A)7,000.
• B)26,520.
• C)57,600.
• D)5,760.
• E)70,000.

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Definitions:

Monthly Compounded

Monthly Compounded refers to the process of applying interest to an initial sum and its previously accumulated interest at monthly intervals.

GIC

Guaranteed Investment Certificate; a Canadian investment that offers a guaranteed rate of return over a fixed period.

Maturity Value

The amount payable to an investor at the end of a fixed term investment, including principal and interest.

Monthly Compounded

A reiteration indicating that the interest accrues on a monthly basis, thereby increasing the investment or loan amount through compounding.