Question

UNESS has a contribution margin ratio of 0.25. UNESS operations income was sh.100 000blast year when the sales totaled sh. 1 000 000.What is UNESS fixed expense? A sh.250 000 B sh.350 000 C sh.150 000 D sh.225000

Answer 1

Answer:

D sh.225000

Step-by-step explanation:

Calculation to determine UNESS fixed expense?

Using this formula

Fixed expense=(Total sales - Operating income)*Contribution margin ratio

Let plug in the formula

Fixed expense=($1,000,000-$100,000)*0.25

Fixed expense=$900,000*0.25

Fixed expense=$225,000

Therefore UNESS fixed expense is $225,000