MacCloud Industries Has Two Divisions-Standard and Premium -What Is the Break-Even Point in Dollars?
A)$115,200
B)$888,889
C)$914,286

Multiple Choice

MacCloud Industries has two divisions-Standard and Premium.Each division has hundreds of different types of tennis racquets and tennis products.The following information is available: $\begin{array}{lrr}&\text { Standard Division}&\text { Premium Division }&\text {Total }\\\text { Sales } & \$ 400,000 & \$ 600,000&\$1,000,000 \\\text { Variable costs } & 280,000 & 360,000 \\\text { Contribution margin }&\$120,000&\$240,000\\\text { Total fixed costs }&&&\$320,000\end{array}$
-What is the break-even point in dollars?

A) $115,200
B) $888,889
C) $914,286
D) $941,117