Reported Question / Answer
The answer is .2631 or 26.31%, not $26.31. Also its Contribution Margin ratio, not Contribution Margin. Calculation: BEP= Fixed cost ÷ C/M ratio and C/M ratio = F.C÷ BEP C/M ratio = 25000÷95000
The answer $30 is wrong.The answer is .2631 or 26.31%, not $26.31 given in option. Also its Contribution Margin ratio, not Contribution Margin. Calculation: BEP= Fixed cost ÷ C/M ratio and C/M ratio = F.C÷ BEP C/M ratio = 25000÷95000
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