Question

Bonita Company has the following data: Variable costs are 80% of the unit selling price. The contribution margin per unit is

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer: $609000 / 0.20 = X

Explanation:

The formula for Breakeven in dollars is Fixed cost / Contribution margin ratio, so Fixed cost is $609000 and Contribution margin ratio is 0.20 (1.00 - 0 .80) . As variable cost is 80% then the contribution margi ratio is 1.00 - 0.80 = 0.20. Finaly Break even point in dollars = $30,45,000.

Add a comment
Know the answer?
Add Answer to:
Bonita Company has the following data: Variable costs are 80% of the unit selling price. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT