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A company manufactures and sells a single product with a variable cost per unit of $36. It has a contribution ratio of 25%. The company has weekly fixed costs of $18,000.
What is the weekly breakeven point, in units?
A. 1,500
B. 1,600
C. 1,800
D. 2,000My problem is: I cannot understand how to come for the denominator of 0.75.
Contribution is selling price less variable costs.
If the contribution is 25% of the selling price, then the variable costs must be 75% of the selling price.
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