Breakeven Point in Sales Dollars We have a retail store. Here is the most recent data based on 10,000 units: Sales $500,000 Variable Expenses ($300,000) Contribution Margin $200,000 Less Fixed Expenses (150,000) Operating Income 50,000 What is the Breakeven Point in Sales Dollars? Let's find out by using the following formula. Breakeven Point in Sales Dollars - Formula Breakeven Point in Sales Dollars = Fixed Expenses CM Ratio But first, let's learn some additional ratios that will prove to be important in helping us. Contribution Margin Ratio: Contribution Margin- Sales What does this mean? Answer-make sure you explain your answer thoroughly: Variable Cost Ratio: Variable Costs = Sales What does this mean? Answer - make sure you explain your answer thoroughly