Assume the following (1) variable expenses = $315,000, (2) unit sales = 10,000, (3) the contribution...
Assume the following (1) variable expenses = $315,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 25%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?
A: The total fixed expenses = $78,750
B: The break-even point in sales dollars is $380,000
C: The total contribution margin = $236,250
D: The total sales = $393,750
Homework Answers
rate positively ..
| Total sales= | 10000 | ||
| variable expenses | $ 315,000.00 | ||
| Contribution margin ratio = | 25% | ||
| net operating income = | $ 10,000.00 | ||
| Total sales = | $ 420,000 | ||
| 315000/(1-25%) | |||
| Fixed cost = | 95000 | ||
| 420000-315000-10000 | |||
| Break even level = | $ 380,000 | ||
| 95000/25% | |||
| Therefore answer =B - : The break-even point in sales dollars is $380,000 |
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