Question
Below is an income statement for XYZ Company: Sales $400,000 Variable costs (100,000 ) Contribution margin $300,000 Fixed costs (250,000 ) Net Income $ 50,000
Below is an income statement for XYZ Company:
| Sales | $400,000 |
| Variable costs | (100,000) |
| Contribution margin | $300,000 |
| Fixed costs | (250,000) |
| Net Income | $ 50,000 |
Based on the cost and revenue structure on the XYZ income statement, what was the break-even point in sales dollars (using theY-formula)?
| a. | $666,667 |
| b. | $566,667 |
| c. | $433,333 |
| d. | $333,333 |
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
