Question

Jones Blanket Company sells blankets for​ $25 each. The variable cost of each blanket is​ $10. If fixed cost is​ $4,500,000, then the breakminuseven point is​ 300,000 units. True False

Answer 1

Answer:

given statement is true

Explanation:

given data

sells blankets =​ $25 each

variable cost = $10

fixed cost = $4,500,000

break minus even point =​ 300,000 units

to find out

true/ false

solution

we will check here break minus even point for find true or false

so here

Contribution is express as = sells blankets - variable cost

Contribution = $25 - $10 = $15

so

break minus even point = $\frac{fixed \ cost}{Contribution}$

put here value

break minus even point = $\frac{4500000}{15}$

break minus even point = 300,000

so we can say given statement is true