Corporate Finance Q121

0. The unit contribution margin for a product is $20. Assuming fixed costs of $200,000, interest costs of $25,000, and a tax rate of 35%, the operating breakeven point (in units) is closest to:

Answer
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Option : C
Explanation : QOBE = (Fixed costs) / (Contribution margin) = 200,000 / 20 = 10,000

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