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fenil 12 April 2020 at 17:07 PM
Firm A has the following information with regard to the production and sales of product XIT. Selling price per unit is $15, total variable cost per unit is $9, and total fixed costs are $30,000. What is the breakeven revenue for XIT? a) $2,000 b) $5,000 c) $50,000 d) $75,000
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FACULTY 09 May 2020 at 01:31 PM
fixed cost = $30000
Contribution = sales - variable c
= 15-9
= 6
contribution margin = 6/15
=.4
break even revenue = fixed cost /contribution margin
3000
=30000/.4
=75000 (option d)
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