Dorian Company Produces and Sells a Single Product

question 54

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
-The break-even point in sales dollars is:

• A) $48,000
• B) $72,000
• C) $28,800
• D) $0

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Definitions:

Sales Efforts

Activities undertaken to increase the visibility and desirability of a product or service to potential customers, aiming to drive sales and revenue.

Supplier Scoring

A method used to evaluate and rank suppliers based on various performance indicators such as quality, delivery time, and cost.

Performance Dimension

Performance dimension refers to the various aspects through which an organization's effectiveness can be evaluated, such as quality, speed, and flexibility.

Price Dimension

Refers to the components that make up the pricing structure of a product or service, including base price, discounts, and surcharges.