Reference no: EM132666968
Problem 1: Which of the following statements regarding Company A is INCORRECT?
A- If Company A has fixed costs of $923,400 a selling price of $57 per unit, and contribution margin of $38 per unit, its break-even point in units is 48,600 units.
B- If company A had fixed costs of $923,400 a selling price of $57 per unit and contribution margin of $38 per unit, its variable expenses must be $19 per unit.
C- Both if Company A has fixed costs of 923,400 a selling price of $57 per unit, and contribution margin of $38 per unit its break even point in units is 48,600 units and if Company has fixed costs of $923,400 a selling price of $57 per unit and contribution margin of $24300 per unit its variable expenses must be $19 per unit are incorrect.
D- If Company A fixed costs of $923,400 a selling price of $57 per unit and contribution margin of $38 per unit once it has covered its fixed costs net income will increase by $38 for each additional unit sold.
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