Question

Contribution Margin = Selling Price - Variable Cost

$0.50 - $0.30 = $0.20 (Contribution Margin)

Breakeven # of Units = Fixed Costs / Contribution Margin per Unit
$900,000 / $0.20 = 4,500,000 (Breakeven # of Units)

Breakeven units x Selling Price = Breakeven Revenues
4,500,000 x $0.50 = 2,250,000

Answer 1

The subject of this question is business. It involves calculations and analysis related to a firm's contribution margin, breakeven point, and breakeven revenues. The answer provides an explanation and examples of these concepts.

Step-by-step explanation:

The subject of this question is business.

The question provides information about a firm's contribution margin, breakeven point, and breakeven revenues. It also includes calculations and examples related to costs, profits, and quantity produced. The information given is used to analyze the firm's financial situation and make decisions.

Keywords: contribution margin, breakeven point, breakeven revenues, costs, profits, quantity produced