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Nelson Manufacturing has the following data:

1.Variable costs are 60% of the unit selling price.
2.The contribution margin ratio is 40%.
3.The unit contribution margin is $500.
4.The fixed costs are $500,000.
Which of the following does not express the break-even point?

a. $500,000 ÷ $500 = X
b. $500,000 ÷ .40 = X
c. $500,000 + .40X = X
d. $500,000 + .60X = X

User MadhavanRP
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1 Answer

1 vote

Answer:

B : 500,000 ÷ .40 = X

Step-by-step explanation:

User Pgcan
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