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2 years ago

Contribution margin is first used to cover expenses. Once the break-even point has been reached, contribution margin becomes:.

Business

1 answer:

oksano4ka [1.4K]2 years ago

4 0

It should be noted that the contribution margin is first used to cover fixed expenses.

<h3>What is contribution margin?</h3>

The contribution margin simply shows you the aggregate amount of revenue that is available after variable costs to cover fixed expenses.

Contribution margin is first used to cover fixed expenses. Once the break-even point has been reached, the contribution margin becomes profit.

Learn more about contribution margin on:

brainly.com/question/24962994

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3 years ago

A company desires to sell a sufficient quantity of products to earn a profit of $400,000. If the unit sales price is $20, unit v

Amanda [17]

Answer:

Number of units to be sold = 150000

So option (b) is correct option

Explanation:

We have given net income = $400000

Unit sales price = $20

Unit variable cost= $12

Total fixed cost $800000

Units must be sold to earn net income of $400,000 =

$=profit+\frac{total\ fixed\ cost}{sale\ price}-ubit\ variable\ cost=400000+\frac{800000}{20}-12=150000units$

So number of units to be sold = 150000

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3 years ago

Harold Corporation has an existing contract to sell 200 units of product to a customer at $10 each. After the delivery of 150 un

nika2105 [10]

Answer:

C. $142.50

Explanation:

From the existing contract,

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3 years ago

Read 2 more answers

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Answer:

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Explanation:

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3 years ago

The assertion that "There is no free lunch" means that:

kati45 [8]

Answer:

The correct answer is option B.

Explanation:

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3 years ago