Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 5 - Cost-Volume-Profit Relationships - The Foundational 15 - Required - Page 217: 9

Answer

Break even point in dollar sales = Total Fixed expenses $\div$ Contribution Margin ratio = 6,000 $\div$ 0.4 = 15,000 dollars

Work Step by Step

Total Fixed expenses = 6,000 dollars Contribution Margin ratio = 0.4 (as calculated in Question 2) Break even point in dollar sales = Total Fixed expenses $\div$ Contribution Margin ratio = 6,000 $\div$ 0.4 = 15,000 dollars
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