A Product Has a Contribution Margin Per Unit of $17

question 202

Essay

A product has a contribution margin per unit of $17 and sells at $25 per unit. If the break-even point is 82,000 units, calculate (a) the variable costs per unit and (b) the total fixed costs.

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Definitions:

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Psychosurgery

Surgical operations on the brain intended to relieve severe mental disorders.

Placebo Effect

A beneficial effect, produced by a placebo drug or treatment, that cannot be attributed to the properties of the placebo itself, and must therefore be due to the patient's belief in that treatment.

Therapeutic Window

The range of a drug's dosage which provides efficacy without causing unacceptable adverse effects.