Variable costs are 60% of the unit selling price. The contribution margin ratio is 40%. The contribution margin per unit is P500. The fixed costs are P400,000. Which of the following does not express the break-even point?
Variable costs are 60% of the unit selling price. The contribution margin ratio is 40%. The contribution margin per unit is P500. The fixed costs are P400,000. Which of the following does not express the break-even point?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
National Company has the following data:
Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%.
The contribution margin per unit is P500.
The fixed costs are P400,000.
Which of the following does not express the break-even point?
Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%.
The contribution margin per unit is P500.
The fixed costs are P400,000.
Which of the following does not express the break-even point?
P400,000 ÷ $500 = X
P400,000 + .40X = X
P400,000 ÷ .40 = X
P400,000 + .60X = X
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