Coronado Company has the following data: Variable costs are 80% of the unit selling price. The unit contribution margin is $400. The fixed costs are $596000. Which of the following expresses the break-even point in dollars? 0.20 x 596000 = X ($596000 ÷ $400) x 0.80 = X 596000 ÷ 0.80 = X $596000 ÷ 0.20 = X
Coronado Company has the following data: Variable costs are 80% of the unit selling price. The unit contribution margin is $400. The fixed costs are $596000. Which of the following expresses the break-even point in dollars? 0.20 x 596000 = X ($596000 ÷ $400) x 0.80 = X 596000 ÷ 0.80 = X $596000 ÷ 0.20 = X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Coronado Company has the following data:
Variable costs are 80% of the unit selling price.
The unit contribution margin is $400.
The fixed costs are $596000.
Which of the following expresses the break-even point in dollars?
Variable costs are 80% of the unit selling price.
The unit contribution margin is $400.
The fixed costs are $596000.
Which of the following expresses the break-even point in dollars?
0.20 x 596000 = X
($596000 ÷ $400) x 0.80 = X
596000 ÷ 0.80 = X
$596000 ÷ 0.20 = X
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