Roberts Produce Company has fixed costs of $14,000.The company's contribution margin ratio is 46%,and the ratio of selling revenue to sales is 20%.What is the breakeven point in sales dollars? (Round your answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

B)Required sales in dollars = (Fixed costs + Target profit)/ Contribution margin ratio
Required sales in dollars = ($14,000 + 0)/ 46% = $30,435

Roberts Produce Company Has Fixed Costs of $14,000