McGordon Corporation has provided the following data:$\begin{array}{|l|r|}
\hline \text { Sales } & \$ 800,000 \
\hline \text { Variable expenses } & \$ 560,000 \
\hline \text { Fixed expenses } & \$ 168,000 \
\hline
\end{array}$

-What is the break-even point in sales dollars?
A) $240,000.
B) $560,000.
C) $728,000.
D) $408,000.

Question

McGordon Corporation has provided the following data:$\begin{array}{|l|r|}
\hline \text { Sales } & \$ 800,000 \
\hline \text { Variable expenses } & \$ 560,000 \
\hline \text { Fixed expenses } & \$ 168,000 \
\hline
\end{array}$

-What is the break-even point in sales dollars?
A) $240,000.
B) $560,000.
C) $728,000.
D) $408,000.

Quizplus · Accepted Answer

The break-even point in sales dollars is calculated by dividing the total fixed expenses by the contribution margin ratio. The contribution margin ratio is calculated as (Sales - Variable Expenses) / Sales = ($800,000 - $560,000) / $800,000 = 0.3. Therefore, the break-even point is $168,000 / 0.3 = $560,000.

McGordon Corporation Has Provided the Following Data -What Is the Break-Even Point in Sales Dollars? A) $240,000

McGordon Corporation Has Provided the Following Data -What Is the Break-Even Point in Sales Dollars?
A) $240,000