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Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 42%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a) The total fixed expenses = $74,000 b) The total variable expenses = $84,000 c) The total contribution margin = $116,000 d) The break-even point is 6,875 units

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 42%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a) The total fixed expenses = $74,000 b) The total variable expenses = $84,000 c) The total contribution margin = $116,000 d) The break-even point is 6,875 units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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$10,000. Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 42%, and (4) net operating income = Given these four assumptions, which of the following is true? b) The total variable expenses = a) The total fixed expenses = $74,000 $84,000 c) The total contribution margin = $116,000 d) The break-even point is 6,875 units 2328
Transcribed Image Text:$10,000. Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 42%, and (4) net operating income = Given these four assumptions, which of the following is true? b) The total variable expenses = a) The total fixed expenses = $74,000 $84,000 c) The total contribution margin = $116,000 d) The break-even point is 6,875 units 2328
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