Tucker Corp.
Tucker Corp. has the following product information:
$$\begin{array} { l l }
\text { Sales price } & \$ 12 \text { per unit } \
\text { Contribution margin ratio } & 40 \% \
\text { Fixed costs } & \$ 45000
\end{array}$$
-What is the break-even point in sales dollars?

Question

Tucker Corp.
Tucker Corp. has the following product information:
$$\begin{array} { l l } 
\text { Sales price } & \$ 12 \text { per unit } \
\text { Contribution margin ratio } & 40 \% \
\text { Fixed costs } & \$ 45000
\end{array}$$
-What is the break-even point in sales dollars?

Quizplus · Accepted Answer

The break-even point in sales dollars can be calculated using the formula: Break-even point = Fixed Costs / Contribution Margin Ratio. Given the fixed costs of $45,000 and a contribution margin ratio of 40%, the break-even point is $45,000 / 0.40 = $112,500.

Tucker Corp -What Is the Break-Even Point in Sales Dollars? A)

Tucker Corp -What Is the Break-Even Point in Sales Dollars?
A)