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TRUE or FALSE? All else constant, if fixed costs increase by $25,000 next year, then the amount of sales revenue required for the firm to
TRUE or FALSE? All else constant, if fixed costs increase by $25,000 next year, then the amount of sales revenue required for the firm to break even next year would increase by more than $25,000. True False Winston Inc. has the following data: Sales $1,200,000 revenue Variable $400,000 costs Contribution $800,000 margin Fixed costs $500.000 Operating $300,000 income What will be the contribution margin ratio at Winston Inc. if its sales volume decreases by 20%? Assume the selling price is unchanged. (Round your answer to two decimal places.) O 16.67% 33.33% 66.67% 30.00% None of the above The following data are available for FM Inc's single product for the most recently completed period, during which the company sold 1,100 units. Total Sales $17,600 revenue Variable $9,680 costs Contribution $7.920 margin Fixed costs $3.600 Operating $4,320 income What is FM Inc's break-even point in units and in revenue dollars? 1,100 units and $17,600 O 1,100 units and $8,000 O 8,000 units and $500 500 units and $8,000 None of the above RAM Hardware sells a single product for $45 per unit. If the company's variable cost ratio is 55% and fixed costs total $60,750, then the firm's break-even point in unit sales volume is: O 1,512 units O 1,237 units 1.960 units O 3,000 units None of the above
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