Refer to Desjardin Tools. What is the break-even point in sales dollars?
A) $392,241
B) $420,000
C) $761,905
D) $948,275

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenue equals total costs. To calculate the break-even point, we need to know the fixed costs and the variable costs per unit. The fixed costs are given as $392,241. The variable costs per unit are not given, but we can calculate them by dividing the total variable costs by the number of units sold. The total variable costs are given as $556,034, and the number of units sold is not given. Therefore, we cannot calculate the break-even point in sales dollars.