The following information is for Joshua Corporation: $\begin{array}{ll}
\text { Tot al fixed costs } & \$ 333,500 \
\text { Variable costs per unit } & \$ 99 \
\text { Selling price per unit } & \$ 154
\end{array}$ If total fixed costs increased to $394,850, then break- even volume in dollars would increase by:
A) 34.3%
B) 12.3%
C) 18.4%
D) 10.0%

Question

Quizplus · Accepted Answer

The break-even volume in dollars is calculated by dividing total fixed costs by the contribution margin ratio. An increase in fixed costs from $333,500 to $394,850 increases the break-even point, and the percentage increase is calculated as $(394,850 - 333,500) / 333,500 \approx 18.4\%$.

The Following Information Is for Joshua Corporation If Total Fixed Costs Increased to $394,850, Then Break- Even