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ashly138 ashly138
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7 years ago
At the break-even point of 200 units, variable costs total $400 and fixed costs total $600. The 201st unit sold will contribute ________ to profits.
A) $1
B) $2
C) $3
D) $5
E) $6
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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#1
7 years ago
C
Explanation:  C) $1,000 - $400 - $600 = 0; Sales ($1,000/200) - Variable costs ($400/200) = $3 CM
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