Question: A product for $40 per unit and has a contribution margin ratio of 40%. Fixed expenses total $200,000 annually. How many units of the product

A product for $40 per unit and has a contribution margin ratio of 40%. Fixed expenses total $200,000 annually. How many units of the product must be sold to yield and operating income of $80,000?

Multiple Choice

17,500 units.
40,000 units.
15,000 units.
30,000 units.

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