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Calculate the break-even market share if the break-even volume is 40 million units.

Smith Automotive is a company that produces component parts for automobile engines. A margin of $4 per unit produces fixed expenses of $80 million. The market demand for the component parts is 400 million units per year.

Calculate the break-even market share if the break-even volume is 40 million units.
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A. 12.5%
B. 10%
C. 15%
D. 5%

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