Mr. Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each. He has determined that his fixed costs are $8,000, and his variable costs per fire screen are $45. What is his fixed cost contribution per screen? a.$45 b.$80 c.$88.89 d.$125e.$170 Mr. Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each. He has determined that his fixed costs are $8,000, and his variable costs per fire screen are $45. What is his break-even point in units? a.47 b.64 c.50 d.100 e.178

Important Point = Variable cost per unit is (rigid) remains constant . It is not change due…

Answered: Mr. Ibsen makes and sells hand-forged…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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Mr. Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each. He has determined that his fixed costs are $8,000, and his variable costs per fire screen are $45. What is his fixed cost contribution per screen?

a.$45

b.$80

c.$88.89

d.$125

e.$170

a.47

b.64

c.50

d.100

e.178

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