A company provided the following data: Sales $540,000 Variable costs $378,000 Fixed costs $120,000 Expected production and sales in units 40,000 units What is the break-even point in sales dollars? a. $498,000 b. $400,000 c. $171,429 d. $112,500 e. $150,000

A company provided the following data: Sales $540,000 Variable costs $378,000 Fixed costs $120,000 Expected production and sales in units 40,000 units What is the break-even point in sales dollars? a. $498,000 b. $400,000 c. $171,429 d. $112,500 e. $150,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

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Question

A company provided the following data:

Sales	$540,000
Variable costs	$378,000
Fixed costs	$120,000
Expected production and sales in units	40,000	units

What is the break-even point in sales dollars?

$498,000

$400,000

$171,429

$112,500

$150,000

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