Question

Northern pacific fixtures corporation sells a single product for $28 per unit. if variable expenses are 65% of sales and fixed expenses total $9,800, the break-even point is:

Answer 1

$15,077. $18,200. $9,800. $28,000. (If variable expenses are 65% of sales, then contribution margin ratio must be 35%. Fixed cost of $9,800 divided by .35 = $28,000