Corporate Finance Q119

119The unit contribution margin for a product is $15. Assuming fixed costs of $15,000, interest costs of $4,000, and a tax rate of 40%, the operating breakeven point (in units) is closest to:

Option : B
Explanation : QOBE = (Fixed cost) / (Contribution margin) = F / (P - V) = 15,000 / 15 = 1,000

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