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    A company has fixed costs of $900 and a per-unit contribution margin of $3. Which of the following statements is (are) true?

    A. Each unit "contributes" $3 toward covering the fixed costs of $900.
    B. The situation described is not possible and there must be an error.
    C. Once the break-even point is reached, the company will make money at the rate of $3 per unit.
    D. The firm will definately lose money in this situation.
    E. Statements "A" and "C" are true.

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    Solution Summary

    The solution explains one multiple choice question relating to breakeven