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A company produces and sells 2,000 units of finished goods and incurs $60,000 of fixed costs annually. The contribution margin is $60 per unit, and

A company produces and sells 2,000 units of finished goods and incurs $60,000 of fixed costs annually. The contribution margin is $60 per unit, and variable cost is $40 per unit. If the company expects sales quantities to increase by 10% next year, the operating profit will be

  • A.$60,000
  • B.$132,000
  • C.$120,000
  • D.$72,000

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