Question

Nelson Manufacturing has the following data:Variable costs are 60% of the unit selling price.The contribution margin ratio is 40%.The unit contribution margin is $500.The fixed costs are $500,000.Which of the following does not express the break-even point?a. $500,000 ÷ $500 = Xb. $500,000 ÷ .40 = Xc. $500,000 + .40X = Xd. $500,000 + .60X = X

Answer 1

The answer is C. $500,000 + .40X = X

Step-by-step explanation:

$500,000 + .40X = X

Break even point = 500000 ÷ 500

= 1000 units