Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in sales dollars for Biscuit Company?

a.$12,500

b.$2,750

c.$6,875

d.$3,125

The Cumberland Company provides the following information:

Sales (250,000 units)	$625,000
Manufacturing costs:
Variable	212,500
Fixed	37,500
Selling and administrative costs:
Variable	100,000
Fixed	25,000

What is the contribution margin ratio for Cumberland?

a.0.76

b.0.16

c.0.34

d.0.50