If the contribution margin is $500 per unit and the breakeven sales volume is 35 units, what is the total fixed cost?

Multiple choice question for Cost Volume Profit Analysis. Select an option, then review the explanation below.

Explanation

To find the fixed cost, multiply the contribution margin per unit ($500) by the breakeven number of units (35): $500 × 35 = $17,500. Therefore, the fixed cost is $17,500.

Practice related questions from the same subject.

1.What is obtained when the fixed costs are divided by the contribution margin per unit?
2.Given a contribution margin ratio of 30% and a selling price of $5,000, what is the contribution margin amount for each unit?
3.Given a contribution margin of $13,000 and total variable costs amounting to $7,000, what is the total revenue?
4.Given a selling price of $5000 and a contribution margin per unit of $1000, what is the contribution margin percentage?
5.Given a revenue of $15,000, variable costs totaling $5,000, and fixed costs amounting to $2,000, what is the operating income?

If the contribution margin is $500 per unit and the breakeven sales volume is 35 units, what is the total fixed cost?

Explanation

More Cost Volume Profit Analysis MCQs