Fushia Company\'s contribution margin per unit is $12. Total fixed costs are$84,

Question

Fushia Company's contribution margin per unit is $12. Total fixed costs are$84,000. What is Fuschia's break-even point in units?.

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(- ? C secure https://new connect rnheducation.com/flow conect.htm. Ch 05 Quiz Help Seve& Exlt Submit MC Qu. 80 Watson Company has monthly fixed costs... 4 . watson ny has monthly fixed costs of $83,000 and a 40% contbution mar natio H the company has set a target mor dollar amount of sales must be made to produce the torget income? points Multiple Choice Ask $245,000 $207500 537.300 $170000 ?Prev 4of10 Next > Type here to search 0

Explanation / Answer

1) BEP (in units) = Fixed Cost / Contribution margin per unit = $84000/$12 = 7000 units 4) Answer: $245000 => Dollar amount of sales to achieve target income = (FC+target income)/contribution margin =(83000 + 15000)/0.4 = $245000

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