Data concerning Sinisi Corporation's single product appear below: The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $407,600
B) $1,405,400
C) $574,000
D) $795,600

Question

Data concerning Sinisi Corporation's single product appear below:  The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
A) $407,600 
B) $1,405,400 
C) $574,000 
D) $795,600

Quizplus · Accepted Answer

The formula to calculate the break-even point in sales dollars is:
Break-even point = Fixed costs / (1 - (Variable costs / Sales))
Substituting the given values, we get:
Break-even point = $285,000 / (1 - (0.70 / 1))
Break-even point = $285,000 / 0.30
Break-even point = $950,000
Therefore, the closest answer is C) $574,000.

Data Concerning Sinisi Corporation's Single Product Appear Below: the Break-Even