MC Qu. 114 Maroon Company's contribution... Maroon Company's contribution margin ratio is 32%. Total fixed costs...

Question

Question

Answer 1

Answer #1

Correct answer is $390000.

Answer option of $390000 is not given here.

The formula for break even point is:

Break even point = Fixed cost / Contribution margin ratio

Putting the given values in the above formula, we get,

Break even point = $124800 / 32%

Break even point = $124800 / 0.32

Break even point = $390000

Answer 2

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