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Question 1: Royal Co. makes and sells only one product. The unit contribution margin is KD5 and the breakeven point in unit sales is KD 24,000. The company's fixed costs are:
Select one:
a. KD 4,800b. KD 144,000c. KD 24,000d. KD 120,000
Question 2: Depreciation on a personal computer used in the marketing department of a manufacturing firm would be classified as:
a. a product cost that is variable with respect to the company's output.b. a period cost that is fixed with respect to the company's output. c. a period cost that is variable with respect to the company's output.d. a product cost that is fixed with respect to the company's output.
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