Answer:
The correct answer is $430,000.
Explanation:
According to the scenario, the given data are as follows:
Contribution margin ratio = 60%
Operating income = $50,000
sales revenue = $800,000
So, we can calculate the total fixed expenses by using following formula:
Total fixed expenses = Contribution Margin - Operating income
Where, Contribution margin = Contribution margin ratio × sales
Contribution margin = .60 × $800,000 = $480,000
So, by putting the value in the formula, we get,
Total fixed expenses = $480,000 - $50,000
= $430,000
