Asked by
Daniel Aldana
on Nov 12, 2024Verified
If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point in sales dollars?
A) $1,250,000
B) $450,000
C) $1,875,000
D) $300,000
Break-even Point
The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business has "broken even."
Sales Dollars
A term used to represent the total value, in monetary terms, of all sales transactions within a specified period.
Variable Costs
Operating expenses that fluctuate based on business operations.
- Undertake a cost-volume-profit (CVP) analysis and identify the break-even point.
Verified Answer
EG
Learning Objectives
- Undertake a cost-volume-profit (CVP) analysis and identify the break-even point.