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Company a has a contribution margin of 50 and a fixed cost

Question - Company "A" has a contribution margin of 50% and a fixed cost of $110,000. Company "B" has a contribution margin of 25% and a fixed cost of $50,000. If both companies only sell one product and the estimated demand quantity for each company is 12,000 units, then at what selling unit price would each company made the same amount of profit?

a. $22.00

b. $20.00

c. $17.78

d. $25

e. cannot be determined

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Accounting Basics: Company a has a contribution margin of 50 and a fixed cost

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