Asked by
Julissa Aguirre
on Nov 17, 2024Verified
If fixed costs are $750,000 and variable costs are 60% of sales, the break-even point in sales dollars is
A) $1,250,000
B) $450,000
C) $1,875,000
D) $300,000
Break-even Point
The level of production or sales at which total revenues equal total costs, resulting in no net loss or gain.
Fixed Costs
Fixed expenses that are unaffected by production or sales volumes, encompassing costs like rent, employee salaries, and insurance fees.
Variable Costs
Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.
- Calculate the break-even point in units and dollars.
Verified Answer
JB
Learning Objectives
- Calculate the break-even point in units and dollars.