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Igoryamba
3 years ago
7

Coronado Industries is planning to sell 750000 units for $1.50 per unit. The contribution margin ratio is 20%. If Coronado will

break even at this level of sales, what are the fixed costs
Business
1 answer:
yKpoI14uk [10]3 years ago
4 0

Answer:

$225,000

Explanation:

the break even formula = total fixed costs / contribution margin

  • break even in units = 750,000 units
  • contribution margin = 20% x $1.50 = $0.30

750,000 units = total fixed costs / $0.30

750,000 units x $0.30 = total fixed costs

total fixed costs = $225,000

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e. 14.60%

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When Moon Star Products Inc. planned to start its operations in United Cadvia, an emerging nation, it realized that it will have
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