Question

his Quiz: 20 pts possible Corny and Sweet grows and sells sweet corn at its roadside produce stand. The s costs are $1,000. What are breakeven sales in dollars? per dozen is $3.75, variable costs are $1 25 per dozen, and total fixed ○ A. S500 OB. $1,500 О с. $400 OD. S2.000 answer 2

Answer 1

Company's total fixed expenses Break even point in sales Dollars Contribution Margin Ratio where as Contribution Margin ratio Revenue/Sales Contribution Margin Revenue/sales Variable expenses From the given problem Selling Price Variable costs Total Fixed costs $3.75 $1.25 $1,000 -

$3.75- $1.25 $2.50 Contribution Margin $2.50/ $3.75 66.67% Contribution Margin ratio- Break even point in sales Dollars) $1000 / 66.67% $1,500.00 Option B: $1,500