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 ?