Nelson Manufacturing Has the Following Data: Variable Costs Are 60

question 106

Multiple Choice

Nelson Manufacturing has the following data: Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%.
The unit contribution margin is $500.
The fixed costs are $500000.
Which of the following does not express the break-even point?

• A) $500000 + .60X = X
• B) $500000 + .40X = X
• C) $500000 ÷ $500 = X
• D) $500000 ÷ .40 = X

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