If Fixed Costs Are $600,000 and the Unit Contribution Margin

question 85

Multiple Choice

If fixed costs are $600,000 and the unit contribution margin is $40, what is the break-even point if fixed costs are increased by $90,000?

• A) 17,250
• B) 15,000
• C) 8,333
• D) 9,667

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Definitions:

80-20 Rule

A principle that asserts that 80% of effects come from 20% of causes, often used in business to highlight the importance of focusing on key contributors to revenue or problems.

Market-product Grid

A matrix used to analyze and display the relationship between different markets and the products a company offers.

Statistical Data

Quantitative information collected and analyzed for the purpose of identifying patterns, trends, or insights.

Synergies

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.