Respuesta :

Fixed costs = $84,000
Contribution margin ratio = 24%

To find the break-even point in sales dollars:
Break-even in sales = Fixed costs/contribution margin ratio
Break-even in sales = 84,000/0.24
Break-even in sales = $350,000
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Answer: Break-even point in sales is $350,000.

Explanation:

Break-even point in sales can be computed by dividing total fixed cost by contribution margin ratio.

Given,

Fixed cost = $84,000

Contribution margin ratio = 24% = 0.24

[tex]Break-even point in sales = \frac{Total Fixed Cost}{Contribution margin ratio}[/tex]

[tex]Break-even point in sales = \frac{$84,000}{0.24}[/tex]

[tex]Break-even point in sales = $350,000[/tex]

Thus, break-even point in sales dollars is $350,000.

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