Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $126,000 The variable expense per unit = $7.40 The total contribution margin = $74,000 The break-even point is 8,077 units

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice
  • The total fixed expenses = $126,000

  • The variable expense per unit = $7.40

  • The total contribution margin = $74,000

  • The break-even point is 8,077 units

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