Evaluate the contribution margin


The Northenscold Co. sells a product that has a $20.00 selling price. Variable cost is $8.00 per unit. Annual fixed costs are $96,000 per year. A. What is the contribution margin? B. How many units must be sold each year to break even? C. How many units must be sold to make a profit of $144,000?

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Accounting Basics: Evaluate the contribution margin
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