Dodero Company Produces a Single Product That Sells for $100

question 103

Multiple Choice

Dodero Company produces a single product that sells for $100 per unit.Fixed expenses total $12,000 per month,and variable expenses are $60 per unit.The company's sales average 500 units per month.Which of the following statements is correct?

• A) The company's break-even point is $12,000 per month.
• B) The fixed expenses remain constant at $24 per unit for any activity level within the relevant range.
• C) The company's contribution margin ratio is 40%.
• D) Responses A, B, and C are all correct.

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