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Q1. K-Henry's Dull Diner has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must K-Henry's generate in order to reach the break-even point?
a) $282,880b) $1,060,800c) $208,476d) $1,105,000
Q2. A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%?
a) $75.00b) $62.50c) There is not enough information in the problem to answerd) $67.50
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