Break even sales question...10 pts for most helpful answer!?

Question

Luke's Truck Lines delivers freight through Alberta, Saskatchewan & Manitoba. The company has monthly fixed expenses of $420 000 and a contribution margin of 70% of revenue.

What is Luke's monthly break-even sales in dollars (has to be contribution margin approach)

Answer 1

Monthly break-even in $ = ( Monthly fixed expenses / CM ratio )

= $420,000 / 0.70 = $600,000