Lake Sales Had $2,200,000 in Sales Last Month

question 158

Multiple Choice

Lake Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% and operating profits were $180,000.
-What is Lake's break-even sales volume?

• A) $660,000.
• B) $1,540,000.
• C) $1,600,000.
• D) $2,020,000.

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Definitions:

Liable

Responsible by law; legally answerable.

Foreseeable

Foreseeable refers to the ability to predict or anticipate an event or outcome based on current knowledge or reasoning.

Negligence

The failure to exercise the level of care that a reasonably prudent person would in similar circumstances, leading to harm or damage.

Fraud

A deliberate deception practiced to secure unfair or unlawful gains.