Question: Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If

Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio

Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.

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