Question
Boswell company reported the following information for the current year. Sales (50,000 units ) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000
Boswell company reported the following information for the current year. Sales (50,000 units ) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000 and fixed costs $270,000. What is Boswell's contribution margin ratio? A. 68% B. 45% C. 32% D. 55% What is Boswell's break-even-point in units?
A. 24,546
B. 30,000
C. 38,334
D. 42,188Step by Step Solution
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The contribution margin ratio Sales Variable Costs Sales x 1...
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Fundamentals of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
3rd edition
1118845897, 978-1118845899
