Answered: A company has total fixed costs of…

A company has total fixed costs of $240,000 and a contribution margin ratio of 20%. The total sales necessary to break even are Group of answer choices $1,200,000. $288,000. $960,000. $300,000.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Question

A company has total fixed costs of $240,000 and a contribution margin ratio of 20%. The total sales necessary to break even are

Group of answer choices

$1,200,000.

$288,000.

$960,000.

$300,000.

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