1. Lake Sales had $1,900,000 in sales last month. The contribution margin ratio was 40% and operating profits were $160,000. What is Lake's break-even sales volume?

Multiple Choice

• $1,140,000.

• $1,740,000.

• $760,000.

• $1,500,000.

2. Lake Sales had $1,700,000 in sales last month. The contribution margin ratio was 40% and operating profits were $150,000. What sales volume does Lake's need to yield a $265,000 operating profit?

Multiple Choice

• $375,000.

• $1,550,000.

• $1,987,500.

• $1,965,000.