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Question 4 (1 point) Winny's Office Furniture has a contribution margin ratio of 16%. If fixed...

Question 4 (1 point)

Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $195,300, how many dollars of revenue must the company generate in order to reach the break-even point?

Round to two decimal places.

Your Answer:

Question 4 options:

Answer

Question 5 (1 point)

Tim Taylor has written a self improvement book that has the following cost characteristics:

Selling Price $16.00 per book
Variable cost per unit:
Production $4.00
Selling & administrative 2.00
Fixed costs:
Production $96,400 per year
Selling & administrative 21,000 per year

How many units must be sold to break-even?

Round to two decimal places.

Your Answer:

Question 5 options:

Answer
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Answer #1

Dear student, only one question is allowed at a time. I am answering the first question

4)

Break even sales in dollars

= Fixed costs / Contribution margin ratio

= $ 195,300 / 16%

= $ 195,300 / 0.16

= $ 1,220,625

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