Answer
This question test your skills of Break-Even equation. Make sure to understand the mechanics of how to rearrange the equation to find out the missing values.
Work Step by Step
Fixed Costs 456,000
Sales price 9.5
variable costs 3.8
contribution margin 5.7
break even point (# of customers) = 456,000/5.7 = 80,000
Breakeven point (in $) = 80,000 customers * 9.5 per customer = 760,000
