Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
-The break-even point in sales dollars is:

Question

Quizplus · Accepted Answer

The break-even point in sales dollars can be calculated using the formula:
Break-even point = Fixed expenses / Contribution margin ratio
Substituting the given values, we get:
Break-even point = $28,800 / 0.4
Break-even point = $72,000
Therefore, the correct answer is B, $72,000.

Dorian Company Produces and Sells a Single Product