Determine the break-even contribution margin ratio for a company with a fixed overhead of $115,000, revenues of

Question:

Determine the break-even ratio for a company with a fixed overhead of $115,000, revenues of $1,500,000, and a required level of profit of $85,000.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...