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A-9000 B-1000 C-900 D-2000
contribution margin = fixed costs + profit
Fixed Cost = Contribution - Profit
Profit = Contribution - Fixed cost
"Break Ever point = Point of No profit or No loss"
In Break even point = Contribution = Fixed cost
900000=Contribution Margin
CM per Unit =900000/1000
=900
Correct answer is900..................................
Contribution per unit =900. (BEP in units = Fixed Cost/Contribution p/u)
Contribution per unit is : C-900
Answer is option C. $900
At break even point, CM=FC
Break even point in units is1,000
therefore, $900,000 CM/1,000 units = $900 CM/unit
C----------------------------------------------------
c-900
breakeven point = contribution marjin - fixed costs
0= CM-900000
900000=CM
CM-U=900000/1000
=900
BEP = FC $ / CM $
so;
1000 = 900000 / ? = CM 900 $