Purchase Solution

Finding the Break-even Point in Sales Dollars

Not what you're looking for?

Ask Custom Question

Wallace, Inc., prepared the following budgeted data based on a sales forecast of $6,000,000:

Variable Fixed
Direct materials $1,600,000
Direct labor 1,400,000
Factory overhead 600,000 $ 900,000
Selling expenses 240,000 360,000
Administrative expenses 60,000 140,000
Total $3,900,000 $1,400,000

What would be the amount of sales dollars at the break-even point?
A) $2,250,000
B) $3,500,000
C) $4,000,000
D) $5,300,000

Purchase this Solution

Solution Summary

This solution discusses cost-volume-profit relationships in great depth and illustrates how to find the break-even point in sales dollars.

Solution Preview

The formula to find the break-even point in sales dollars is:

Break-even point in sales dollars=Fixed Costs/Contribution Margin Ratio
Contribution Margin Ratio=Contribution Margin/Sales Revenues
Contribution Margin Ratio=(Sales Revenues-Variable Costs)/Sales ...

Purchase this Solution

Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.


This tests some key elements of major motivation theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.