Ribco Co. makes and sells only one product. The unit contribution margin is $6 and the break-even point in unit sales is 24,000. The company's fixed costs are:
A)$4,000.
B)$14,400.
C)$40,000.
D)$144,000.
E)$24,000.

Question

Quizplus · Accepted Answer

The break-even point in units is calculated as fixed costs divided by the unit contribution margin. Therefore, fixed costs = 24,000 units * $6 = $144,000.

Ribco Co Makes and Sells Only One Product