Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Finance

Authors: Scott Besley, Eugene F. Brigham

6th edition

9781305178045, 1285429648, 1305178041, 978-1285429649

More Books

Students also viewed these Accounting questions