Question

Baugh company expects to sell 5000 shares for $10 per unit. The contribution margin ratio is 30 and Baugh will break even at this sales level. What are Baughs fixed costs?

Answer 1

The contribution margin ratio is the difference between a company's sales and variable expenses, expressed as a percentage.
Sales = 50000
Variable cost = 50000*0.7=35000
Fixed cost = 15000

Answer 2

Thank you so much!