Asked by

Daniel Aldana
on Nov 12, 2024

verifed

Verified

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.
verifed

Verified Answer

EG
Ethan GasperNov 19, 2024
Final Answer:
Get Full Answer