The answer for this problem is found by dividing Total Fixed Cost by the contribution margin ratio. Sales of $1,500,000 less variable cost of $675,000 equals contribution margin of $825,000. The contribution margin ratio is $825,000 / $1,500,000, which is 55%. Total fixed costs are $100,000 + $250,000, for a total of $350,000 fixed costs. $350,000 / .55 = breakeven point in sales revenue of $636,364. This answer results from using fixed costs totaling $100,000. Total fixed costs are more than $100,000. See correct answer. See correct answer.
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