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Vanessa jenix
on Nov 12, 2024

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At a break-even point of 400 units sold, variable expenses were $4,000 and fixed expenses were $2,000. What will the 401st unit sold contribute to profit?

A) $15.
B) $5.
C) $0.
D) $10.

Variable Expenses

Expenses that change in proportion to the activity of a business such as production volume or sales.

Fixed Expenses

Costs that do not change in total despite fluctuations in the volume of goods or services produced or sold.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no profit or loss is generated.

  • Acquire knowledge of and determine the values of the contribution margin and its corresponding ratio.
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DY
daniela yanesNov 18, 2024
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