Allen,Inc. ,has a contribution margin of 40% and fixed costs of $250,000.What is the break-even point in sales dollars?
A)$100,000
B)$250,000
C)$375,000
D)$625,000

Name: Allen,Inc. ,has a contribution margin of 40% and fixed costs of $250,000.What is the break-even point in sales dollars? A)$100,000 B)$250,000 C)$375,000 D)$625,000
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Question

Quizplus · Accepted Answer

The break-even point in sales dollars is calculated by dividing the fixed costs by the contribution margin ratio. $250,000 / 0.40 = $625,000.

Allen,Inc ,Has a Contribution Margin of 40% and Fixed Costs