Cartman Enterprises management has budgeted the following amounts for its next fiscal year:

If Cartman Enterprises can reduce fixed expenses by $16,000,how will breakeven sales in units be affected?

Question

Cartman Enterprises management has budgeted the following amounts for its next fiscal year:

If Cartman Enterprises can reduce fixed expenses by $16,000,how will breakeven sales in units be affected?

Quizplus · Accepted Answer

D)
Sales $25.00
Less Variable expenses 15.00
Contribution Margin $10.00
Fixed Expense $550,000 / $10 CM = 55,000
Fixed expense $550,000
Less Reduction 16,000
Equals 534,000 / $10 CM = 53,400 Break Even;1,600 Decrease

Cartman Enterprises Management Has Budgeted the Following Amounts for Its