The Following Is Last Month's Contribution Format Income Statement(Do Not

question 57

Multiple Choice

The following is last month's contribution format income statement(Do not round intermediate computations) :
$\begin{array}{|l|r|}\hline \text { Sales }(20,000 \text { units }) & \$ 1,800,000 \\\hline \text { Less: variable expenses } & 1,200,000 \\\hline \text { Contribution margin } & 600,000 \\\hline \text { Less: fixed expenses } & \underline{400,000} \\\hline \text { Operating income } & \$ 200,000 \\\hline\end{array}$
What is the company's break-even in sales dollars?

• A) $1,200,000.
• B) $0.
• C) $1,800,000.
• D) $1,600,000.

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