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Franklin Company Is a Medium-Sized Manufacturer of Bicycles

Question 6

Multiple Choice

Franklin Company is a medium-sized manufacturer of bicycles.During the year a new line called "Radical" was made available to Franklin's customers.The break-even point for sales of Radical is $250,000 with a contribution margin ratio of 40 percent.Assuming that the profit for the Radical line during the year amounted to $80,000,total sales during the year would have amounted to:


A) $450,000.
B) $420,000.
C) $400,000.
D) $475,000.

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