1. sales = $200,000
2. unit sales = 10,000
3. the contribution margin ratio = 40%
4. net operating income = $10,000
Given these four assumptions, which of the following is true?
Multiple Choice
The total fixed expenses = $70,000
The total variable expenses = $80,000
The total contribution margin = $120,000
The break-even point is 7,500 units