Please given answer accounting Variable costs as a percentage of sales for Lemon Inc. are 80%,current sales are $600,000, and fixed costs are $130,000.What is the break even point in sales?a. 610,000b. 520,000c. 650,000d. none of the above

Step 1:First calculate the contribution margin percentage: Contribution margin percentage = 100% -…

Answered: Variable costs as a percentage of sales…

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 23E

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Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. What is the break even point in sales? a. 610,000 b. 520,000 c. 650,000 d. none of the above