Asked by
Mohammed Saleh
on Nov 12, 2024
Verified
If fixed costs are $850,000 and the unit contribution margin is $50, profit is $0 when 15,000 units are sold.
Unit Contribution Margin
The dollars available from each unit of sales to cover fixed costs and provide operating profits.
Fixed Costs
Expenses that do not change with the level of production or sales over the short term, such as rent and salaries.
- Identify break-even points and understand their significance in strategic business planning.
- Discern the effect of cost component alterations on the profitability of a business.
Verified Answer
NC
Learning Objectives
- Identify break-even points and understand their significance in strategic business planning.
- Discern the effect of cost component alterations on the profitability of a business.