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. The contribution margin is sales revenue minus variable costs, which is $60,000. The contribution margin ratio is $60,000 / $200,000 = 0.3. The breakeven point is $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)