Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer both questions 1. When a company's total contribution margin is $135,000 at the break even point, its fixed costs are not greater than

please answer both questions image text in transcribed
image text in transcribed
1. When a company's total contribution margin is $135,000 at the break even point, its fixed costs are not greater than $135,000. A) True B) False 9. X Company sold a product last year that had a $5.00 unit contribution margin. A significant change in the company's production technology has caused a 10% increase in annual fixed costs but a 20% decrease in unit variable costs. Assuming there was no change in the product's $10.00 selling price, what is the company's new contribution margin ratio? A. 60% B. 50% C. 40% D. None of the above are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

The Auditor Quo Vadis

Authors: Mervyn King, Linda De Beer

1st Edition

1138496774, 978-1138496774

More Books

Students also viewed these Accounting questions

Question

How does the concept of hegemony relate to culture?

Answered: 1 week ago