Compute the break-even point

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Reference no: EM139631

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) $282,880
b) $1,060,800
c) $208,476
d) $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) $75.00
b) $62.50
c) There is not enough information in the problem to answer
d) $67.50

Reference no: EM139631

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