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If fixed cost is $30000, contribution margin percentage is 40%, then breakeven revenue will be

A. $120,000

B. $75,000

C. $12,000

D. $175,000

Answer: Option B

Solution(By Examveda Team)

Breakeven revenue = Fixed cost × Contribution margin percentage
= $30000 × 40% = $75,000.

This Question Belongs to Management >> Management Accounting

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Comments ( 2 )

  1. Laxmi Sunar
    Laxmi Sunar :
    2 years ago

    30000/40%=75000.

  2. Ghulam Hassan
    Ghulam Hassan :
    2 years ago

    Breakeven revenue = Fixed cost / Contribution margin percentage
    = $30000 / 40% = $75000

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