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The break-even sales in dollars can be calculated as: Break-even sales = Fixed expenses / Contribution margin ratio Contribution margin ratio = Contribution margin / Sales = ($1.49 - $0.36) / $1.49 = $1.13 / $1.49 = 0.758 Break-even sales = $1,300 / 0.758 = $1,300 / $1.13 per cup = $1,150 The break-even sales in dollars is $1,150. The answer is a.

Author

Zuhaib Sagar

Language

EN