7 A company has maximum sales activity of 4,000 units, each with a contribution of 8. Its...

Question:

7 A company has maximum sales activity of 4,000 units, each with a contribution of £8. Its profit/volume chart shows a break-even point of 1,500 units and a maximum profit of

£20,000. What are the total fixed costs of the company?

(a) £12,000

(b) £32,000

(c) £20,000

(d) £52,000

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