Question: please answer both questions 1. When a company's total contribution margin is $135,000 at the break even point, its fixed costs are not greater than

please answer both questions please answer both questions 1. When a company's total contribution margin is
$135,000 at the break even point, its fixed costs are not greater

1. When a company's total contribution margin is $135,000 at the break even point, its fixed costs are not greater than $135,000. A) True B) False 9. X Company sold a product last year that had a $5.00 unit contribution margin. A significant change in the company's production technology has caused a 10% increase in annual fixed costs but a 20% decrease in unit variable costs. Assuming there was no change in the product's $10.00 selling price, what is the company's new contribution margin ratio? A. 60% B. 50% C. 40% D. None of the above are correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!