Great capital or decorative shop or good advicer
A competitive market economy with low barriers to entry affords an entrepreneur with
the opportunity to bring new and different products and services to the market.
Answer:
is less than average revenue or price
Answer:
Option (B) is correct.
Explanation:
Contribution per unit
:
= Selling Price per unit – Variable costs per unit
= $35 - $21
= $14 per unit
Contribution margin ratio
:
= Contribution ÷ Sales
= $14 ÷ $35
= 0.40 or 40%
So, Break even point in Sales dollars
:
= Fixed costs ÷ Contribution margin ratio
= $78,000 ÷ 40%
= $ 195,000