The Eastern Division's break-even sales is closest to:
A)$104,872
B)$368,309
C)$75,641
D)$172,103

Question

Quizplus · Accepted Answer

Break-even sales can be calculated by dividing the total fixed costs by the contribution margin ratio. 
From the data given in the question, the total fixed costs for the Eastern Division are $30,000, and the contribution margin ratio is 40% (calculated as (300-240)/300). 
Therefore, break-even sales for the Eastern Division = $30,000 ÷ 0.4 = $75,000. 
The closest option given is C, which is $75,641.

The Eastern Division's Break-Even Sales Is Closest To