If a firm has a break-even point of 40,000 units and the contribution margin on the firm's

Question:

If a firm has a break-even point of 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at sales of 30,000 units?

Select one:

$15,000

$100,000

$145,000

$30,000

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...