By definition, adding a fixed cost and a variable cost together produces a mixed cost.
7. Kaprelian Company sells desks at $ 480 per desk. The variable costs are $ 300 per desk. Total fixed costs for the period are $ 400,000. The contribution margin ratio is ________.
a. 37.5 %
b. 62.5 %
c. 22.5 %
d. 40.6 %
8. Which action will decrease a company ' s breakāeven point?
a. reducing total fixed costs b. decreasing the selling price per unit c. decreasing contribution margin per unit d. increasing variable cost per unit
9. Key Company has a targeted sales volume of 62,300 units. Total fixed costs are $ 31,200. The contribution margin per unit is $ 1.20. What is targeted net income?