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Millar Company produces a single product that it sells for $89 a unit. If the fixed costs of manufacturing and selling the product are $68,400 a month and the variable costs are $57 a unit, which of the below is correct?Multiple ChoiceThe fixed costs amount to $32 per unit at any level of output within a relevant volume range.The company will break even with a sales volume of $68,400 a month.An increase in sales volume above $68,400 a month will cause an increase in fixed costs.The contribution margin per unit of product is $32.

Question

Millar Company produces a single product that it sells for 89aunit.Ifthefixedcostsofmanufacturingandsellingtheproductare89 a unit. If the fixed costs of manufacturing and selling the product are 68,400 a month and the variable costs are 57aunit,whichofthebelowiscorrect?MultipleChoiceThefixedcostsamountto57 a unit, which of the below is correct?Multiple ChoiceThe fixed costs amount to 32 per unit at any level of output within a relevant volume range.The company will break even with a sales volume of 68,400amonth.Anincreaseinsalesvolumeabove68,400 a month.An increase in sales volume above 68,400 a month will cause an increase in fixed costs.The contribution margin per unit of product is $32.

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Solution

The fixed costs amount to $32 per unit at any level of output within a relevant volume range.

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