Sales total $400,000 when variable costs total $300,000 and fixed costs total $80,000. The breakeven point in sales dollars is ________. (Round interim calculations to two decimal places and the final answer to the nearest dollar.)
A) $320,000
B) $400,000
C) $1,200,000
D) $500,000

Question

Quizplus · Accepted Answer

Contribution margin percentage = ($400,000 - $300,000) / $400,000 = 25%;
BE sales = $80,000 / 0.25 = $320,000

Sales Total $400,000 When Variable Costs Total $300,000 and Fixed