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Key Equation Break-even point in sales dollars= Total fixed costs / Contribution margin ratio For Snowboard Company the break-even point in sales dollars is $125,000 per month: Break-even point in sales dollars=$50,000 / .4 or 40% = $125,000 in sales=$50,000 / .40 Thus Snowboard Company must achieve $125,000 in total sales to break even

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