Christian Company's sales revenue for 20xx was $144,000. Christian's product sells for $5.50 and has a 30 percent contribution margin. Christian has fixed costs of $33,000. What is Christian Company's breakeven point in sales dollars?

Question

Quizplus · Accepted Answer

The breakeven point in sales dollars is calculated by dividing the fixed costs by the contribution margin ratio. The contribution margin ratio is 30%, so the breakeven point is $33,000 / 0.30 = $110,000.

Christian Company's Sales Revenue for 20xx Was $144,000