Scenario 12.1
Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
-Refer to Scenario 12.1. What is the breakeven point in dollar sales volume?
A)$1,200
B)$1,440
C)$3,000
D)$1,920
E)$1,600

Question

Quizplus · Accepted Answer

To find the breakeven point in dollar sales volume, we use the formula Breakeven Point = Total Fixed Costs / ((Selling Price – Variable Costs) / Selling Price).
Substituting the given values, we get Breakeven Point = $1,200 / (($16 - $6) / $16) = $1,920.
Therefore, the breakeven point in dollar sales volume is $1,920.

Scenario 12.1 Use the Following to Answer the Questions