A company has total fixed costs of $200,000 and a contribution margin ratio of 20%.The total sales necessary to break even are
A)$800,000.
B)$1,000,000.
C)$250,000.
D)$240,000.

Name: A company has total fixed costs of $200,000 and a contribution margin ratio of 20%.The total sales necessary to break even are A)$800,000. B)$1,000,000. C)$250,000. D)$240,000.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find the break-even sales, divide the total fixed costs by the contribution margin ratio: $200,000 / 0.20 = $1,000,000.

A Company Has Total Fixed Costs of $200,000 and a Contribution