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Quiz Instructions The following 5 multiple choice questions (4 points each) are in a format similar to what you might anticip
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Answer #1

2) - d) $50,000

Break-even (Sales) = Fixed cost / Contribution Margin percentage

Fixed cost = $40,000

Contribution Margin percentage = (Sales - Variable Costs) / Sales * 100%

= ($800,000 - $160,000) / $800,000 * 100%

= $640,000 / $800,000 * 100%

= 80%

Break-even (Sales) = Fixed cost / Contribution Margin percentage

= $40,000 / 80% (or) $40,000 / 0.8

= $50,000

Style's Break-even (Sales) = $50,000

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