A company has total fixed costs of $200,000 and a contribution margin ratio of 20%. The total sales necessary to break even are $800,000. $1,000,000. $250,000. $240,000.
Added by Mario C.
Step 1
Given that the contribution margin ratio is 20% and the total sales necessary to break even is $1,000,000, we can calculate the contribution margin in dollars by multiplying the total sales by the contribution margin ratio: Contribution Margin = Total Sales * Show more…
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