Reference: 08-05
Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
-The break-even point in sales dollars is?

Question

Quizplus · Accepted Answer

The break-even point in sales dollars is calculated as Fixed Expenses / Contribution Margin Ratio. Here, it's $28,800 / 0.40 = $72,000.

Reference: 08-05 Dorian Company Produces and Sells a Single Product. the Product