Chapter 5, Problem 13Q

To determine

Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with neither profit nor loss is called break-even point of sales.

Formula: $\text{Break-even Sales in dollars}=\frac{\text{Fixed Costs}}{\text{Contribution Margin Ratio}}$

To compute: The break even sales in dollars for Company D.

Given: Fixed costs are $26,000.

Contribution margin ratio is 25%.