Ribco Company Ltd makes and sells only one product. The unit contribution margin is $6, and the break-even point in unit sales is 24 000. What are the company's fixed expenses?

Question

Quizplus · Accepted Answer

We can use the formula for calculating the break-even point in unit sales:

Break-even point = Fixed expenses / Unit contribution margin

Substituting the given values,

24000 = Fixed expenses / 6

Fixed expenses = 24000 * 6

Fixed expenses = 144000

Therefore, the company's fixed expenses are $144 000.

Therefore, the answer is D.

Ribco Company Ltd Makes and Sells Only One Product