Blanton Company is planning to sell 600,000 units for $1.50 per unit. The contribution margin ratio is 20%. If Blanton will break even at this level of sales, what are the fixed costs?

Name: Blanton Company is planning to sell 600,000 units for $1.50 per unit. The contribution margin ratio is 20%. If Blanton will break even at this level of sales, what are the fixed costs?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed costs = Contribution margin ratio * Sales revenue= 20% * $600,000 * 1.50= $180,000

Blanton Company Is Planning to Sell 600,000 Units for $1