If a salesperson incurs $50,000 in fixed costs and the gross profit percentage is 50%, then the break-even point is:
A)$25,000
B)$1,000
C)$2,500,000
D)$100,000
E)$50,000

Name: If a salesperson incurs $50,000 in fixed costs and the gross profit percentage is 50%, then the break-even point is: A)$25,000 B)$1,000 C)$2,500,000 D)$100,000 E)$50,000
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Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing the fixed costs by the gross profit percentage. Here, $50,000 / 0.50 = $100,000.

If a Salesperson Incurs $50,000 in Fixed Costs and the Gross