Contribution Margin Concepts

DiPinto Electric Guitars & Basses sells musical instruments in Philadelphia. Assume the following information comes from the company's prior year records.

Fixed Variable Total

Sales $$800,000$

Costs

Cost of goods sold $$346,000$

Labor $$180,00040,000$

Supplies $10,0004,000$

Utilities $9,0005,000$

Rent $48,000-$

Advertising $10,000-$

Miscellaneous $10,0005,000$

Total costs $$267,000$ $$400,000(667,000)$

Net income $$133,000$

Required

$($a$.)$ Determine the annual break$-$even dollar sales volume.

Contribution margin ratio: Answer

Annual break$-$even dollar sales volumes: $Answer