Martin Company Has a Current Breakeven Point of 47,000 Units

question 47

Multiple Choice

Martin Company has a current breakeven point of 47,000 units. To reduce the breakeven point, Martin should

• A)Reduce the contribution margin per
• B)Increase the contribution margin per
• C)Reduce the sales price per
• D)Increase variable costs.

---

Definitions:

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after the elimination of inter-company transactions and balances.

Non-Controlling Interest

A minority stake in a company or subsidiary where the shareholder does not have control over company's policies or decisions.

Unrealized Profit

Profit earned on paper from an investment that has increased in value but has not yet been sold by the investor.