Tykee Company has the following data: Variable costs are 75% of the unit selling price. The unit contribution margin is $400. The fixed costs are $600,000. Which of the following expresses the break-even point in dollars? a. .25 x 600,000 = X Ob. 600,000÷.75 = X OC. ($600,000+ $400) x.75 = X 6000.000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Tykee Company has the following data:
Variable costs are 75% of the unit selling price.
The unit contribution margin is $400.
The fixed costs are $600,000.
Which of the following expresses the break-even point in dollars?
.25 x 600,000 = X
O a.
O b.
600,000 .75 = X
c.
($600,000+ $400) x.75 = X
Transcribed Image Text:Tykee Company has the following data: Variable costs are 75% of the unit selling price. The unit contribution margin is $400. The fixed costs are $600,000. Which of the following expresses the break-even point in dollars? .25 x 600,000 = X O a. O b. 600,000 .75 = X c. ($600,000+ $400) x.75 = X
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