Desjardin's makes power tools. The budgeted sales are $550,000, budgeted variable costs are $230,000, and budgeted fixed costs are $227,500.
-Refer to the Figure.What is the break-even point in sales dollars?
A)$392,241
B)$420,000
C)$761,905
D)$948,275

Question

Quizplus · Accepted Answer

The break-even point in sales dollars can be calculated using the formula: Break-even Sales = Fixed Costs / (1 - (Variable Costs / Sales)). Plugging in the given numbers: $227,500 / (1 - ($230,000 / $550,000)) = $392,241.

Desjardin's Makes Power Tools