Corporate Finance Q120

120The per unit contribution margin for a product is $24. Assuming fixed costs of $48,000, interest costs of $5,000, and taxes of $3,000, the operating breakeven point (in units) is closest to:

Option : B
Explanation : The operating breakeven point is: QOBE = (Fixed costs) / (Contribution margin) = $48,000 / $24 = 2,000.

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