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Firlakuza [10]
4 years ago
9

Maroon company's contribution margin ratio is 24%. total fixed costs are $84,000. what is maroon's break-even point in sales dol

lars?
Business
2 answers:
Alla [95]4 years ago
5 0
Fixed costs = $84,000
Contribution margin ratio = 24%

To find the break-even point in sales dollars:
Break-even in sales = Fixed costs/contribution margin ratio
Break-even in sales = 84,000/0.24
Break-even in sales = $350,000
pochemuha4 years ago
4 0

Answer: Break-even point in sales is $350,000.

Explanation:

Break-even point in sales can be computed by dividing total fixed cost by contribution margin ratio.

Given,

Fixed cost = $84,000

Contribution margin ratio = 24% = 0.24

Break-even point in sales = \frac{Total Fixed Cost}{Contribution margin ratio}

Break-even point in sales = \frac{$84,000}{0.24}

Break-even point in sales = $350,000

Thus, break-even point in sales dollars is $350,000.

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