QUESTION 30 ABC sells its shirts for $50 a piece. If fixed costs are $300,000 and...

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QUESTION 30 ABC sells its shirts for $50 a piece. If fixed costs are $300,000 and variable costs are $30 per unit, what is br

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Answer 1

Answer #1

30. Break-even sales = (Fixed costs + Target profit) /Contribution margin ratio

Contribution margin ratio = (50-30)/50 = 40%

= (300,000)/40%

= 750,000

Option D is the answer

.

31. Total budgeted cost

= (4+2+3)*7,000 + 40,000

= 103,000

Option C is the answer

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Answer 2

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