Nelson Manufacturing Has the Following Data: Variable Costs Are 60

question 108

Multiple Choice

Nelson Manufacturing 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 $300,000.
Which of the following does not express the break-even point?

• A)$300,000 + .60X = X
• B)$300,000 + .40X = X
• C)$300,000 ÷ $500 = X
• D)$300,000 ÷ .40 = X

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Definitions:

Unconscionability

A legal doctrine that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of one party, that they are contrary to good conscience.

Specific Performance

A legal remedy in contracts law requiring a party to perform their part of the contract, rather than simply paying damages for failing to do so.

Equitable Remedy

An equitable remedy is a judicial order enforcing a party to act or refrain from acting in a certain way, typically used when monetary damages are inadequate to resolve the harm.

Exculpatory Clause

A part of a contractual agreement that releases one party from liability for any wrongdoings towards the other.