Maroon Company's contribution margin ratio is 24%.Total fixed costs are $84,000.What is Maroon's break-even point in sales dollars?

A) $20,160.
B) $110,526.
C) $350,000.
D) $240,000.
E) $84,000.

Break-Even Point

The point at which total costs equal total revenues, indicating that a business is neither making a profit nor incurring a loss.

Contribution Margin Ratio

The contribution margin ratio is a financial metric indicating the proportion of sales revenue that exceeds variable costs and is available to cover fixed costs and generate profit.

Fixed Costs

Outlays for rent, salaries, and insurance that are unaffected by variations in the volume of production or sales.