Dolly Inc. has a break-even point of 8,000 units. At that break-even point, variable costs are $8,000,

Question:

Dolly Inc. has a break-even point of 8,000 units. At that break-even point, variable costs are $8,000, and fixed costs are $4,000.

Required:

What is the contribution margin of the 401st unit sold?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...

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