Contribution margin ratio and break-even point in dollars

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Reference no: EM131292065

The Shields Company produces a product that sells for $7. Variable costs are $2.10 per unit, while fixed costs per period are $28,000. The contribution margin ratio and break-even point in dollars, respectively, are:

A. 70%; $40,000

B. 30%; $40,000

C. 30%; $56,000

D. 70%; $56,000

2. The Billings Corporation produces and sells watches. The selling price is$11 per watch. Fixed costs are $4,000. Variable costs are $10 per watch. What is the break-even point in units?

A. 10,000 units

B. 5,000 units

C. 4,000 units

D. 400 units

Reference no: EM131292065

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