Questions:
1) If sales revenue per unit increases to $25 and 10,000 units are sold, what is the contribution margin? In the box below the question it says total fixed costs $15000, sale price per unit $23, variable costs per unit $15.
A) 150000
b)1250000
c)135000
d)100000
2) The prentice company has provided the following information
net sales $1000000
operating income $100000
Contribution margin ratio 25%
3) What is the breakeven point in sales dollars?
A)600,000
B)250000
C)900000
D)400000