Green Valley Electronics has total fixed costs of $350,000 and a contribution margin ratio of 40%. What is the break-even sales amount? A. $875,000 B. $1,250,000 C. $875,500 D. $900,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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I am trying to find the accurate solution to this general accounting problem with appropriate explanations.

Green Valley Electronics has total fixed costs of $350,000 and a
contribution margin ratio of 40%. What is the break-even sales amount?
A. $875,000
B. $1,250,000
C. $875,500
D. $900,000
Transcribed Image Text:Green Valley Electronics has total fixed costs of $350,000 and a contribution margin ratio of 40%. What is the break-even sales amount? A. $875,000 B. $1,250,000 C. $875,500 D. $900,000
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