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A company has fixed costs of $96,800. Its contribution margin ratio is 44% and the product sells for $61 per unit.
What is the company's break-even point in dollar sales?

Respuesta :

abiolataiwo2015

$220,000

Explanation:

Calculation for the company's break-even point in dollar sales

Using this formula

Break-Even point in dollars sales= Fixed Costs ÷ Contribution Margin

Let plug in the formula

Break-Even point in dollars sales=$96,800/44%

Break-Even point in dollars sales=$220,000

Therefore the company's break-even point in dollar sales will be $220,000.

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