179k views
0 votes
A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales

User Codr
by
7.9k points

1 Answer

3 votes

Answer:

the break-even point in dollar sales is $300,000

Step-by-step explanation:

The computation of the break-even point in dollar sales is shown below:

= Fixed cost ÷ contribution margin ratio

= $90,000 ÷ 0.30

= $300,000

by dividing the fixed cost from the contribution margin ratio we can get the break even point in dollars

hence, the break-even point in dollar sales is $300,000

User Cpp Forever
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories