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

---

Definitions:

Squatter Settlement

An area of unauthorized or informal housing, often lacking basic services, created by people with nowhere else to live.

Developing Countries

States that have a lower standard of living, less developed industries, and a lower score on the Human Development Index compared to other countries.

Environmental Benefit

Positive effects or outcomes on the natural environment, including improved air and water quality, biodiversity preservation, and ecosystem resilience.

Urbanization

The process by which towns and cities are formed and become larger as more people begin living and working in central areas.