Solve the following problem using the Contribution Margin Approach.
Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is
a) At what percentage of capacity would Beta break even?
b) What would be Beta's net income if it operates at 70% of capacity?

Question

Solve the following problem using the Contribution Margin Approach.
Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is  
a) At what percentage of capacity would Beta break even?
b) What would be Beta's net income if it operates at 70% of capacity?

Quizplus · Accepted Answer

The Answer of Solve the following problem using the Contribution Margin Approach.
Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is  
a) At what percentage of capacity would Beta break even?
b) What would be Beta's net income if it operates at 70% of capacity?

Solve the Following Problem Using the Contribution Margin Approach