Question
A company has fixed costs of $750 and a per-unit contribution margin of $5. Which of the following statements is true? Multiple Choice Each unit
A company has fixed costs of $750 and a per-unit contribution margin of $5. Which of the following statements is true?
Multiple Choice
Each unit "contributes" $5 toward covering the fixed costs of $750.
The situation described is not possible and there must be an error.
Once the break-even point is reached; the company will increase income at the rate of $5 per unit.
The firm will definitely lose money in this situation.
Each unit "contributes" $5 toward covering the fixed costs of $750 and Once the break-even point is reached, the company will increase income at the rate of $5 per unit.
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