# break-even point calculation for vaughn company answers and explanation

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__Break-Even Point Calculation for Vaughn Company__
**Step by step Solution with Explanation**

__Break-Even Point Calculation for Vaughn Company__

## Your question:

Vaughn Company has sales of $497000, variable costs of $447300, and fixed costs of $29000. Ivanhoe Company has sales of $497000, variable costs of $199000, and fixed costs of $253000. Vaughn's break-even point in dollars is

$290000.

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__Break-Even Point Calculation for Vaughn Company__ Answers
and Explanation

__Break-Even Point Calculation for Vaughn Company__Answers and Explanation

We can find Vaughn's break-even point using the contribution margin ratio and formula.

**1. Contribution Margin Ratio (CM Ratio):**

**2. Break-Even Point Formula:**

The break-even point is the sales level where total revenue equals total costs (fixed costs + variable costs). We can express it using the CM Ratio:

**Explanation of Incorrect Answers:**

$418300 and $476300: These values are likely incorrect calculations based on the provided data.