If the fixed cost is $65000 and the contribution margin percentage for the bundle is 0.575, then the breakeven revenue will be ____________?
Correct answer: A. $113,043.48
- A. $113,043.48
- B. $1,200,000
- C. $130,000
- D. $140,000
Explanation
Breakeven revenue equals fixed cost divided by contribution margin percentage: $65,000 ÷ 0.575 = $113,043.48.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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