Which of the following expressions can be used to calculate the break-even point in sales dollars with the contribution-margin ratio (CMR)?
A)CMR ÷ fixed costs.
B)CMR x fixed costs.
C)Fixed costs ÷ CMR.
D)(Fixed costs + variable costs) x CMR.
E)(Sales revenue - variable costs) ÷ CMR.

Question

Quizplus · Accepted Answer

The break-even point in sales dollars is calculated by dividing the fixed costs by the contribution-margin ratio (CMR). This gives the amount of sales needed to cover all fixed costs, resulting in zero profit or loss.

Which of the Following Expressions Can Be Used to Calculate