Answer:
Break even sales = $17,500 (Approx.)
Step-by-step explanation:
Given:
Fixed expenses = $7,000
Contribution ratio = 40%
Find:
Break even sales dollars
Computation:
Break even sales = Fixed expenses / Contribution ratio
Break even sales = 7,000 / 40%
Break even sales = 7,000 / 0.40
Break even sales = 17,500
Break even sales = $17,500 (Approx.)
