Dick Sports,Inc.'s,income statement data for last year is as follows: $$\begin{array} { l r }
\text { Sales revenue } & \$ 200,000 \
\text { Variable costs } & 140,000 \
\text { Fixed costs } & 30,000 \
\text { Operating income } & 18,000 \

\end{array}$$ What is Dick's breakeven point in dollars?

Question

Dick Sports,Inc.'s,income statement data for last year is as follows: $$\begin{array} { l r } 
\text { Sales revenue } & \$ 200,000 \
\text { Variable costs } & 140,000 \
\text { Fixed costs } & 30,000 \
\text { Operating income } & 18,000 \

\end{array}$$ What is Dick's breakeven point in dollars?

Quizplus · Accepted Answer

The breakeven point in dollars is calculated by dividing the total fixed costs by the contribution margin ratio. Contribution margin ratio = (Sales - Variable Costs) / Sales = ($200,000 - $140,000) / $200,000 = 0.3. Breakeven point = Fixed Costs / Contribution Margin Ratio = $30,000 / 0.3 = $100,000.

Dick Sports,Inc What Is Dick's Breakeven Point in Dollars? A) $100,000 B)

Dick Sports,Inc What Is Dick's Breakeven Point in Dollars?
A) $100,000
B)