Last year, Twins Company reported $750,000 in sales (25,000 units) and a net income of $25,000. At the break-even point, the company's total contribution margin equals
$500,000. Based on this information, which of the following is true?
A) The variable expenses are 60% of sales.
B) The variable expense per unit is $10.
C) The break-even point is 24,000 units.
D) The contribution margin ratio is 40%.
Correct Answer:
Verified
Q3: If fixed expenses increase by $10,000 per
Q96: The margin of safety in the Flaherty
Q97: Marling Corporation has budgeted the following
Q98: Reference: 08-01
The following is Addison Corporation's
Q99: Reference: 08-12
Junsin Corporation's budget for next
Q100: Reference: 08-15
Jimbob Co.'s records include the
Q102: The following is last month's contribution
Q104: The ratio of fixed expenses to the
Q105: In a CVP graph, the break-even point
Q106: Reference: 08-03
McGordon Corporation has provided the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents