A business sells a single product which has a contribution margin ratio of 25%. Its breakeven annual sales revenue is £130,000. Assuming that the business breaks even, what would be its annual fixed costs?

A) £162,500

B) £91,000

C) £32,500

D) Cannot be determined from the information given

Answer rating: 100% (QA)

Contribution is the sum of fixed cost and profit In a breakeven sales there ... View the full answer