The following is last month's contribution format income statement: What is the company's break-even in sales dollars?

Name: The following is last month's contribution format income statement: What is the company's break-even in sales dollars?
Brand: Quizplus
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Question

The following is last month's contribution format income statement:  What is the company's break-even in sales dollars?

Quizplus · Accepted Answer

CM ratio = Contribution margin F1F1F1S1F1F1F10 Sales
= $600,000 F1F1F1S1F1F1F10 $1,800,000 = 1/3
Dollar sales to break even = Fixed expenses F1F1F1S1F1F1F10 CM ratio
= $400,000 F1F1F1S1F1F1F10 1/3
= $1,200,000

The Following Is Last Month's Contribution Format Income Statement