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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Definitions:

Ductless Glands

Glands that release hormones directly into the bloodstream without using ducts, also known as endocrine glands.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Somatic

Pertaining to or affecting the body, especially as distinct from the mind or psyche.

Neurotransmitters

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse and, by diffusing across the synapse or junction, cause the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.