The break-even point in dollars is variable costs divided by the weighted-average contribution margin ratio.

Name: The break-even point in dollars is variable costs divided by the weighted-average contribution margin ratio.
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The break-even point in dollars is calculated by dividing the fixed costs by the contribution margin ratio, not variable costs. The contribution margin ratio is calculated as (Sales - Variable Costs) / Sales.

The Break-Even Point in Dollars Is Variable Costs Divided by the Weighted-Average