A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit. The company's break-even point in dollars is:
A) $91,680.
B) $68,760.
C) $2,292.
D) $275,040.
E) $206,280.
D) $275,040.
Explanation: Contribution margin ratio = ($120 - $90)/$120 = 25%
Break-even point in sales dollars = $68,760/0.25 = $275,040
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