When Sales Are $1,000, the Contribution Margin Is $600 and a Pre-Tax

question 147

Multiple Choice

When sales are $1,000, the contribution margin is $600 and a pre-tax loss of $60 occurs. What is the breakeven point in dollars?

• A) $833
• B) $1,100
• C) $1,167
• D) $1,750

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Definitions:

Legal Obligation

A requirement established by law, a contract, or another form of legally binding agreement, that mandates a party to act or to refrain from acting in a certain manner.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Supply Chain Management

Supervising the progression of materials, finances, and information from the origin at the supplier, through the manufacturing process, onto wholesalers, retailers, and ending with the consumer.

Island

A piece of land surrounded by water, often used in various contexts such as geographical locations, metaphorical isolation, or data segmentation.