Answer:
$85,000= fixed costs
Explanation:
Giving the following information:
Contribution margin ratio= 0.45
Desired profit= $50,000
Break-even point in sales with desired income= $300,000
To calculate the fixed costs, we need to use the following formula:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
300,000 = (fixed costs + 50,000) / 0.45
135,000 - 50,000 = fixed costs
$85,000= fixed costs
