Ribco CoMakes and Sells Only One Product

question 13

Multiple Choice

Ribco Co.makes and sells only one product.The unit contribution margin is $6 and the break-even point in unit sales is 24,000.The company's fixed costs are:

• A)$4,000.
• B)$14,400.
• C)$40,000.
• D)$144,000.
• E)an amount other than those abovE.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, which is used to increase the account.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, based on the accounting equation.

Financial Statement

Reports that summarize the financial performance, position, and cash flows of a business for a specific period.

Account

An account is a record within an accounting system that is used to store financial transactions of a particular type, such as assets, liabilities, equity, revenues, and expenses.