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A company has an operating income of $20 million and total fixed expenses of $10...

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Question

Accounting

A company has an operating income of $20 million and total fixed expenses of $10 million. 5 million units are produced at a margin of $6 per unit. What should the margin per unit be if the company needs to achieve a break-even volume for the same number of units?

Select one:

a.

$5 per unit

b.

$2 per unit

c.

$4 per unit

d.

$3 per unit

e.

$1 per unit

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