Last year Easton Company reported sales of £720,000, a contribution margin ratio of 30% and a net loss of £24,000. Based on this information, the break-even point was

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The break-even point in sales is calculated by dividing the fixed costs by the contribution margin ratio. Since the company reported a net loss of £24,000, this amount represents the fixed costs not covered by the contribution margin. Therefore, the break-even point is (£720,000 * 0.30) + £24,000 = £800,000.

Last Year Easton Company Reported Sales of £720,000, a Contribution