Answer:
Break-even point (dollars)= $772,500
Explanation:
Giving the following information:
The contribution margin ratio of Donath Corporation's only product is 64%. The company's monthly fixed expense is $454,200 and the company's monthly target profit is $40,200.
To calculate the sales in dollars to obtain the desired profit, we need to use the following formula:
Break-even point (dollars)= (fixed costs + desired profit)/ contribution margin ratio
Break-even point (dollars)= (454,200 + 40,200) / 0.64
Break-even point (dollars)= $772,500
