The income statement for Brisbane Co is:
$$\begin{array} { l r }
\text { Sales } & \$ 300000 \
\text { Variable Expense } & 200000 \
\text { Contribution Margin } & \$ 100000 \
\text { Fixed Expenses } & 60000 \
\text { Profit } & \$ 40000
\end{array}$$ What is the break-even point in sales dollars?

Question

The income statement for Brisbane Co is:
$$\begin{array} { l r } 
\text { Sales } & \$ 300000 \
\text { Variable Expense } & 200000 \
\text { Contribution Margin } & \$ 100000 \
\text { Fixed Expenses } & 60000 \
\text { Profit } & \$ 40000
\end{array}$$ What is the break-even point in sales dollars?

Quizplus · Accepted Answer

The break-even point in sales dollars can be calculated using the formula: Break-even point = Fixed Expenses / Contribution Margin Ratio. The Contribution Margin Ratio = Contribution Margin / Sales = $100,000 / $300,000 = 1/3. Therefore, the break-even point = $60,000 / (1/3) = $180,000.

The Income Statement for Brisbane Co Is What Is the Break-Even Point in Sales Dollars? A) $20

The Income Statement for Brisbane Co Is What Is the Break-Even Point in Sales Dollars?
A) $20