Why the amount of units must be sold in order to realize


If fixed costs are $750,000 and variable costs are 80% of sales, what is the break-even point in sales dollars?

a. $937,500

b. $600,000

c. $3,750,000

d. $1,275,000

2. If fixed costs are $700,000 and the unit contribution margin is $14, what amount of units must be sold in order to realize an operating income of $100,000?

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Accounting Basics: Why the amount of units must be sold in order to realize
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