Starr Company Has the Following Data

question 132

Multiple Choice

Starr Company has the following data:
Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%.
The contribution margin per unit is $500.
The fixed costs are $400,000.
Which of the following does not express the break-even point?

• A) $400,000 + .60X = X
• B) $400,000 + .40X = X
• C) $400,000 ÷ $500 = X
• D) $400,000 ÷ .40 = X

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