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