Maroon Company's contribution margin ratio is 24%.Total fixed costs are $84,000.What is Maroon's break-even point in sales dollars?
A)$20,160.
B)$110,526.
C)$350,000.
D)$240,000.
E)$84,000.

Question

Quizplus · Accepted Answer

The formula to calculate the break-even point in sales dollars is:
Break-even point (in dollars) = Fixed costs / Contribution margin ratio

Substituting the given values, we get:
Break-even point (in dollars) = $84,000 / 0.24
Break-even point (in dollars) = $350,000

Hence, the answer is option C - $350,000.

Maroon Company's Contribution Margin Ratio Is 24