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business accounting

Answer 1

Answer #1

Break-even Point In Unit = Fixed Cost/ Contribution Margin Per Unit

6000 units =$42000/ Contribution margin p.u


Contribution margin per unit = $42000/6000

Contribution margin per unit = $7

Number of units need to be sold for proft $14000

= (Desired profit + Fixed cost)/ contribution margin per unit

= ($14000 + $42000) /7

=$56000/7

=8000 units

Correct Option: THIRD

Answer 2

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