Quail,Inc ,Has a Contribution Margin of 40% and Fixed Costs

question 67

Multiple Choice

Quail,Inc. ,has a contribution margin of 40% and fixed costs of $130,000.What is the break-even point in sales dollars?

• A)$52,000
• B)$325,000
• C)$225,000
• D)$78,000

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Definitions:

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations during a specific period.

Gains Or Losses

The financial results from selling assets or incurring liabilities, measured as the difference between the sale proceeds and the value recorded in accounts.

Property, Plant

Long-term tangible assets, such as land, buildings, and equipment, used in the operation of a business to generate income.

Continuing Operations

The parts of a business that are expected to continue operating in the future, as opposed to operations that have been discontinued or sold.