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Management · Q258

Management Accounting

Graduate and Post Graduate · Management · question 258

Q258

If fixed cost is 50000 and contribution margin percentage is 20%, then breakeven revenue will be

A.
$100,000
B.
$150,000
C.
$250,000
Answer
D.
$225,000

Answer: Option C

Solution

Answer: Option C
Solution:
Breakeven revenue = Fixed cost ÷ Contribution margin percentage
= 250,000.
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