FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Assume the selling price per unit is $30, the contribution margin ratio is 40%, and the
total fixed cost is $60,000. What is the break-even point in unit sales?
a. 2,000
b. 3,000
c. 4,000
d. 5,000
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- If Sales are $2,000,000 and the Break Even point is $1,500,000. What is the Margin of Safety (ratio)? A. 33% B. 175% C. 25% D. 75%arrow_forward• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?arrow_forward
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