Answer:
Break-even point (dollars)= $660,000
Explanation:
Giving the following information:
The company's contribution margin ratio is 50%
The break-even point is $600,000 in sales revenue.
Fixed expenses increase by $30,000.
<u>To calculate the new break-even point in sales, we need to determine the break-even point for the increase in fixed costs:</u>
Proportional break-even point (dollars)= increase in fixed costs/ contribution margin ratio
Proportional break-even point (dollars)= 30,000/0.5
Proportional break-even point (dollars)= $60,000
<u>New break-even point:</u>
Break-even point (dollars)= 600,000 + 60,000
Break-even point (dollars)= $660,000
