Solved: The contribution margin per unit will remain unchanged at 2, Accounting Basics

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The contribution margin per unit will remain unchanged at 2

A total of 30,000 units were sold last year. The contribution margin per unit was $2, and fixed expenses totaled $20,000 for the year. This year fixed expenses are expected to increase to $26,000, but the contribution margin per unit will remain unchanged at $2. How many units must be sold this year to earn the same profit as was earned last year?

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Accounting Basics: The contribution margin per unit will remain unchanged at 2

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