Contribution margin percentage is divided into fixed costs

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Reference no: EM132108287

1. To calculate the breakeven point dollars, the contribution margin percentage is divided into fixed costs.

True

False

2. To calculate the amount of revenue and units needed to earn a specific profit, simply add the desired profit amount to the total variable costs.

True

False

3. Based on the following data:

a. Selling price: $17

b. Fixed Expenses:

Salaries: $130,000

Rent: $10,000

c. Variable Expenses:

Cost of goods/services sold: $4

Selling and admin: $3

What is the contribution margin?

$10

$13

$14

Reference no: EM132108287

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