Simply add the desired profit amount to total variable costs

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Reference no: EM132108297

1. Contribution margin = sale price per unit - variable costs per unit. It refers to the amount of money per unit that remains to cover the fixed costs and profit.

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

True False

4. Calculate the breakeven point dollars, the contribution margin percentage is divided into fixed costs.

True False

Reference no: EM132108297

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