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Sagot :
Ratio of contribution margin = ($275 - $187)/$275 = 32%
Break-even point in sales dollars = $345,600/0.32 = $1,080,000.
What is Break-even point?
The amount (total sales revenue) or output level (total units produced) at which a business has recouped all variable and fixed costs is known as the break-even point.
- As a result of Total Cost Equals Total Revenue, there is no profit or loss at break-even.
How do you determine the break-even point in sales volume?
Three values must be known in order to calculate a company's breakeven threshold in sales volume:
- a fixed price: Rent is one example of a cost that is not related to sales volume.
- varying expenses costs, such as the price of producing the good, that are based on sales volume
- Price at which the product is sold.
learn more about breakeven point at: https://brainly.in/question/31484328?msp_srt_exp=6&referrer=searchResults
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