Palmer Company Below Is an Income Statement for Palmer Company

Multiple Choice

Palmer Company Below is an income statement for Palmer Company:
$\begin{array}{ll}\text { Sales } & \$ 400,000 \\\text { Variable costs } & \underline{(125,000) } \\\text { Contribution margin } & \$ 275,000 \\\text { Fixed costs } & \underline{(200,000) } \\\text { Profit before taxes } & \underline{\$ 75,000}\end{array}$ Refer to Palmer Company.Based on the cost and revenue structure on the income statement,what was Palmer's break-even point in dollars?

A) $200,000
B) $325,000
C) $300,000
D) $290,909