Sunset Retailers has total fixed costs of $120,000 and a contribution margin ratio of 25%. What is the break- even sales amount?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
icon
Related questions
Question

Please provide the answer to this general accounting question using the right approach.

Sunset Retailers has total fixed costs of $120,000 and a
contribution margin ratio of 25%. What is the break-
even sales amount?
Transcribed Image Text:Sunset Retailers has total fixed costs of $120,000 and a contribution margin ratio of 25%. What is the break- even sales amount?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College