Fixed cost=20,000$ Variable cost per unit of production=500$ Number of items sold= 1000 price=800$ a) What is contribution margin and contribution margin ratio and how do you interpret it? b) What is BEP quantity and $ sold? Explain what do the numbers mean?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Chapter8: Cost Analysis
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Fixed cost=20,000$ Variable cost per unit of production=500$ Number of items sold= 1000 price=800$ a) What is contribution margin and contribution margin ratio and how do you interpret it? b) What is BEP quantity and $ sold? Explain what do the numbers mean?
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