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Morgarella [4.7K]
3 years ago
9

Adams Company sells a product whose contribution margin is $10 and selling price is $25.

Business
1 answer:
Karolina [17]3 years ago
6 0

Answer:

answer is b) False

Explanation:

given data

contribution margin = $10

selling price = $25

total fixed costs = $500

break-even point  = 100 units

solution

we get here Break even point that is

Break even point = \frac{fix\ cost}{contribution\ margin}   ...........1

Break even point = \frac{500}{10}

Break even point = 50 units

but we have given break-even point is 100 units

so answer is b) False

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Hello There!

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Hope This Helps You!
Good Luck :) 

- Hannah ❤
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