1. To calculate the breakeven point dollars, the contribution margin percentage is divided into fixed costs.
True
False
2. To calculate the amount of revenue and units needed to earn a specific profit, simply add the desired profit amount to the total variable costs.
True
False
3. Based on the following data:
a. Selling price: $17
b. Fixed Expenses:
Salaries: $130,000
Rent: $10,000
c. Variable Expenses:
Cost of goods/services sold: $4
Selling and admin: $3
What is the contribution margin?
$10
$13
$14