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Question 20 Coronado Company has the following data: Variable costs are 80% of the unit selling price. The contribution margin per unit is $400. The fixed costs are $596000. Which of the following expresses the break-even point in dollars? O 0.20 x 596000 = X 596000 ÷ 0.80 = X ($596000 ÷ $400) x 0.80 = X $596000 0.20-x

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Answer #1

Contribution margin =Selling price-Variable costs

=(100-80)=20%

Hence breakeven point=Fixed cost/Contribution margin ratio

=$596000/0.20

Hence the correct option is D.

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