If break-even number of units are 120 units and fixed cost...

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If break-even number of units are 120 units and fixed cost is $62000, then contribution margin per unit will be

A. $74,400

B. $7,440,000

C. $516.67

D. $51,667

Answer: Option C

Contribution margin per unit = Fixed cost ÷ Break-even number of units
= $62000 ÷ 120 = $516.67.

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