Based on the fixed cost and the variable cost percentage, the break-even point in dollars is $2,250,000.
What is the breakeven point when given the variable cost percentage?
When you have the fixed cost and the variable cost percentage, the break-even point in dollars is:
= Fixed cost / Contribution margin ratio
= Fixed cost / (1 - Variable cost percentage)
Solving gives:
= 900,000 / ( 1 - 60%)
= $2,250,000
Find out more on breakeven points at https://brainly.com/question/24206188.
