A Company Sells a Single Product That Has a Contribution

question 65

Essay

A company sells a single product that has a contribution margin ratio of 24%. If the company's total fixed costs are $84,000, what is the break-even point in dollar sales?

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Definitions:

Urban Areas

Regions characterized by higher population density and vast human features in comparison to areas surrounding them.

Population

The total number of people inhabiting a specific area or country.

Maximize Utility

The process or goal of obtaining the highest level of satisfaction or benefit possible from available resources or choices.

Households

Economic units consisting of all persons who occupy a housing unit, including single families, individuals living alone or with others, but who make joint financial decisions.