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