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Management · Q308

Management Accounting

Graduate and Post Graduate · Management · question 308

Q308

If fixed cost is 65000 and contribution margin percentage for bundle is 0.575, then breakeven revenue will be

A.
$113,043.48
Answer
B.
$1,200,000
C.
$130,000
D.
$140,000

Answer: Option A

Solution

Answer: Option A
Solution:
Breakeven revenue = Fixed cost ÷ Contribution margin percentage for bundle
= 113,043.48.
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