Cameron Corp.
Cameron Corp. has the following product information:
$$\begin{array} { l l }
\text { Sales price } & \$ 20 \text { per unit } \
\text { Contribution margin ratio } & 35 \% \
\text { Fixed costs } & \$ 59500
\end{array}$$
-What is the break-even point in sales dollars?

Question

Cameron Corp.
Cameron Corp. has the following product information:
$$\begin{array} { l l } 
\text { Sales price } & \$ 20 \text { per unit } \
\text { Contribution margin ratio } & 35 \% \
\text { Fixed costs } & \$ 59500
\end{array}$$
-What is the break-even point in sales dollars?

Quizplus · Accepted Answer

The break-even point in sales dollars is calculated by dividing the fixed costs by the contribution margin ratio. Thus, $59,500 / 0.35 = $170,000.

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

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