Question
John's breakeven point for September was $125,000. When he calculated the breakeven point for October it was only $115,000. What is the most likely reason
John's breakeven point for September was $125,000. When he calculated the breakeven point for October it was only $115,000. What is the most likely reason for this change?
John's sales mix changed, likely with a higher percentage of sales in a department with a low contribution margin ratio.
John's fixed costs increased substantially from September to October.
John's variable costs increased substantially from September to October.
John's sales mix changed, likely with a higher percentage of sales in a department with a high contribution margin ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The detailed answer for the above question is provided be...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App