The Cumberland Company Provides the Following Information What Is the Break-Even Point in Sales Dollars for Cumberland

question 37

Multiple Choice

The Cumberland Company provides the following information: $\begin{array} { l } \text {Sales (250,000 units) }&\$625,000\\ \text {Manufacturing costs: }&\\ \text {Variable }&212,500\\ \text { Fixed}&37,500\\ \text {Selling and administrative costs: }&\\ \text {Variable }&100,000\\ \text { Fixed}&25,000\\\end{array}$

What is the break-even point in sales dollars for Cumberland?

• A)$125,000
• B)$100,000
• C)$37,500
• D)$300,000

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating the contribution of sales to fixed costs and profit.