Greenbrier Company had sales of $400,000, variable costs of $240,000, and fixed costs of $90,000.In order to break-even necessary sales would be:

Question

Quizplus · Accepted Answer

To break-even, total revenue must be equal to total costs.

Total costs = Fixed costs + Variable costs = $240,000 + $90,000 = $330,000

To find the necessary sales to break-even:

Total revenue = Necessary sales * Selling price

Plug in the given numbers:

$400,000 = Necessary sales * Selling price

Solving for necessary sales:

Necessary sales = $400,000 / Selling price

We don't have the selling price, but we can use the information given to solve for it:

$330,000 = Necessary sales * Selling price

Solving for selling price:

Selling price = $330,000 / Necessary sales

Now we can plug in the selling price to solve for necessary sales:

$400,000 = Necessary sales * ($330,000 / Necessary sales)

$400,000 = $330,000

Necessary sales = $400,000 / $330,000 = $225,000

Therefore, the best choice is B, $225,000.

Greenbrier Company Had Sales of $400,000, Variable Costs of $240,000