Drake Company”s income statement for the most recent year appears below:
|
Sales (26,000 units) |
$650,000 |
|
Less: Variable expenses |
442,000 |
|
Contribution margin |
208,000 |
|
Less: Fixed expenses |
234,000 |
|
Net operating loss |
$ (26,000) |
The break-even point in sales dollars is:
A) $731,250
B) $676,000
C) $675,000
D) $720,000