A product has a contribution margin per unit of $12, a contribution margin ratio of 30 percent, and allocated fixed costs of $4 per unit. What is the selling price of the product?     $3.60 $44 $7.60 $40 $4.80

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4EB: A product has a sales price of $90 and a per-unit contribution margin of $30. What is the...
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A product has a contribution margin per unit of $12, a contribution margin ratio of 30 percent, and allocated fixed costs of $4 per unit. What is the selling price of the product?    

  1. $3.60
  2. $44
  3. $7.60
  4. $40
  5. $4.80
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