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

The breakeven point in dollar sales volume can be calculated using the following formula:
Breakeven Point = Total Fixed Costs / (Selling Price - Variable Costs)
Substituting the given values, we get:
Breakeven Point = $1,200 / ($16 - $6) = $1,920
Therefore, the breakeven point in dollar sales volume is $1,920.