Management Accounting quizzes
How costs, budgets and performance measures help managers plan, make decisions and keep a business on track.
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From Management Accounting: Cost-volume-profit analysis · Contribution Margin and Break-Even Point
A company has fixed costs of 30,000 and a contribution margin ratio of 40%. What sales revenue does it need to break even?
- 75,000
- 12,000
- 50,000
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Answer: 75,000
Break-even revenue equals fixed costs divided by the contribution margin ratio: 30,000 / 0.40 = 75,000.
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