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Managerial Accounting

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Calculating Breakeven in Sales for Golf Balls

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Ogontz Corp manufactures golf balls. Currently, the golf balls have a retail selling price is \$40, the contribution margin ratio is 40% and annual fixed costs are \$50,000? What amount of revenue in actual sales dollars does Ogontz need to make to break even?

A

$125,000

B

$83,333

C

$100,000

D

$107,500