Question

Ploeger Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.

Sales (4,000 units) $ 240,000
Variable expenses 156,000
Contribution margin 84,000
Fixed expenses 81,900
Net operating income $ 2,100

Answer 1

The question is missing the below options:

The break-even point in dollar sales is closest to:

a$234,000

b$237,900

c$156,000

d $0

The break-even sales is $234,000,option A, as shown by the calculation below.

At break-even,total revenue is equal total costs, no gain or loss is recorded.

Step-by-step explanation:

Particulars Amt

Sales (4,000 units) $240,000

Variable expenses $156,000

Contribution margin $84,000

Contribution Margin Ratio =Contribution/Sales =(X)35.00%

Fixed expenses (Y) $81,900

Break Even Sale (Y/X)$234000