The contribution margin ratio is 50%. If total fixed costs are $21,000, then what is the total cost ($) of producing and selling 55,000 units? The selling price is $5 per unit. Oa 137,500 O b. 137,500 Oc 254,000 Od. 116,500 O e None of the given answers

The contribution margin ratio is 50%. If total fixed costs are $21,000, then what is the total cost ($) of producing and selling 55,000 units? The selling price is $5 per unit. Oa 137,500 O b. 137,500 Oc 254,000 Od. 116,500 O e None of the given answers

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The contribution margin ratio is 50%. If total fixed costs are $21,000, then what is the total cost ($) of producing and selling 55,000 units? The selling price is $5 per unit.
O a 137,500
O b. 137,500
Oc 254,000
O d. 116,500
O e None of the given answers
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