Adams Company sells a product whose contribution margin is $10 and selling price is $25. If the company's break-even point is 100 units, its total fixed costs must be $500.
Answer the following statement true (T) or false (F)
False
Break-even point in units = Fixed costs ÷ Contribution margin per unit
100 units = Fixed costs ÷ $10 per unit
Fixed costs = $10 per unit × 100 units = $1,000
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