Question
Calculate the following unknowns based on the data below. All situations are independent of each other. Sales revenue at breakeven point $375,000 Total fixed costs
Calculate the following unknowns based on the data below. All situations are independent of each other. Sales revenue at breakeven point $375,000 Total fixed costs $150,000 Contribution margin ratio .40 a) Calculate the total variable costs at the breakeven point. b) Assume fixed costs decrease by $10,000 and all other data remains constant. Calculate the new breakeven point in sales dollars. c) Assume variable costs per unit decrease by 20%. Calculate the new contribution margin ratio. d) Assume variable costs per unit decrease by 10%. Calculate the new breakeven point in dollar sales.
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