A company manufactures and sells a product for $120 per unit.The company's fixed costs are $68,760,and its variable costs are $90 per unit.The company's break-even point in dollars is:
A) $91,680
B) $68,760
C) $2,2921
D) $275,040
E) $206,280

Question

Quizplus · Accepted Answer

Contribution margin ratio = ($120 - $90)/$120 = 25%
Break-even point in sales dollars = $68,760/0.25 = $275,040

A Company Manufactures and Sells a Product for $120 Per