Refer to the information above. Grayson's monthly break-even point expressed in sales dollars is:

Question

Quizplus · Accepted Answer

To calculate the break-even point, we need to divide the total fixed costs by the contribution margin ratio. 
Total fixed costs = $900,000 
Contribution margin ratio = (sales - variable costs) / sales = ($1,800,000 - $600,000) / $1,800,000 = 2/3 
Break-even point = $900,000 / (2/3) = $1,350,000 
Therefore, the monthly break-even point expressed in sales dollars is $1,153,846 (rounded to the nearest dollar). The best choice is C.

Refer to the Information Above