Dick Sports, Inc.'s, income statement data for last year is as follows: $\begin{array}{|l|l|}
\hline \text { Salesrevenue } & \$ 200,000 \
\hline \text { Variable costs } & 140,000 \
\hline \text { Fixed costs } & 30,000 \
\hline \text { Operating income } & 18,000 \
\hline &
\end{array}$
What is Dick's breakeven point in dollars?

Question

Dick Sports, Inc.'s, income statement data for last year is as follows: $\begin{array}{|l|l|}
\hline \text { Salesrevenue } & \$ 200,000 \
\hline \text { Variable costs } & 140,000 \
\hline \text { Fixed costs } & 30,000 \
\hline \text { Operating income } & 18,000 \
\hline &
\end{array}$
 What is Dick's breakeven point in dollars?

Quizplus · Accepted Answer

The breakeven point in dollars is calculated by dividing the fixed costs by the contribution margin ratio. The contribution margin ratio is calculated as (Sales revenue - Variable costs) / Sales revenue. In this case, it's ($200,000 - $140,000) / $200,000 = 30%. Therefore, the breakeven point is $30,000 (fixed costs) / 30% = $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)