1.If total fixed costs doubled and contribution margin per unit was cut in half, what would happen...

Question:

1.If total fixed costs doubled and contribution margin per unit was cut in half, what would happen to the breakeven point?
a. It would decrease by half.
b. It would double.
c. It would triple.
d. It would quadruple

2. What is BioTec’s contribution margin ratio?
a. 60%
b. 40%
c. 30%
d. 20%

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...