Gerber Company is planning to sell 200,000 units for $2.00 a unit and will just brea? even at this level of sales. The contribution margin ratio is 25%. What are the company's fixed expenses?

Name: Gerber Company is planning to sell 200,000 units for $2.00 a unit and will just brea? even at this level of sales. The contribution margin ratio is 25%. What are the company's fixed expenses?
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Question

Quizplus · Accepted Answer

Fixed expenses = (1 - Contribution margin ratio) * Sales revenue= (1 - 0.25) * 200,000 * $2.00= $100,000

Gerber Company Is Planning to Sell 200,000 Units for $2