Refer to the following Gunther's Emporium information to answer the question(s)below:
Gunther's Emporium expects net sales of $2,396,919 for the upcoming year, with variable expenses totaling $1,813,443 and fixed expenses of $412,190.
-Gunther's Emporium expects net sales of $2,396,919 for the upcoming year, with variable expenses totaling $1,813,443 and fixed expenses of $412,190. What is Gunther's break-even point?
A)$1,876,324
B)$1,693,276
C)$5,667,009
D)Insufficient information given to determine.

Question

Quizplus · Accepted Answer

The break-even point can be calculated using the formula: 
Break-even point = (Fixed expenses) / (Contribution margin)
Contribution margin = (Net sales) - (Variable expenses)

Substituting the values given:
Contribution margin = $2,396,919 - $1,813,443 = $583,476
Break-even point = $412,190 / $583,476 = $1,693,276

Therefore, the answer is B.

Refer to the Following Gunther's Emporium Information to Answer the Question(s)below