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Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 42%, and (4) net operating income =

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 42%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

  • The break-even point is 6,875 units

  • The variable expense per unit = $8.40

  • The total fixed expenses = $116,000

  • The total contribution margin = $84,000

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