Last year,Black Company reported sales of $640,000,a contribution margin of $160,000,and an operating loss of $40,000.Based on this information,what was the break-even point?

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The break-even point in sales dollars can be found by dividing the fixed costs by the contribution margin ratio. The contribution margin ratio is the contribution margin divided by sales ($160,000 / $640,000 = 0.25). The operating loss represents the fixed costs since at the operating loss point, total costs exceed total sales, and variable costs have been covered by the contribution margin. Therefore, fixed costs are $200,000 ($160,000 contribution margin - $40,000 loss). To find the break-even point in sales dollars: $200,000 / 0.25 = $800,000.

Last Year,Black Company Reported Sales of $640,000,a Contribution Margin of $160,000,and