if fixed expenses totaled $770,000 for the year, the break-even point in sales dollars was: $1,925,000
What is breakeven point in dollars?
The breakeven point in dollars is the amount of sales revenue gemma corporate needs to achieve in order to make zero profit, such that total sales revenue is the same as total costs
breakeven point=fixed costs/contribution margin ratio
fixed costs=$770,000
contribution margin ratio=unknown
The fact variable cost was not given means the formula is not appropriate in this context, however, company's net operating income was $1,000,000, which means that the breakeven point with a zero profit is sales revenue minus the net operating income
break-even point in sales dollars=$2,950,000-$1,000,000
break-even point in sales dollars=$1,925,000
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