Break-even point in sales value

Steps:

• Identify total fixed costs (expenses not varying with output).
• Calculate contribution sales ratio (total contribution divided by total sales revenue).
• Divide fixed costs by the ratio to find break-even sales revenue.
• Verify by ensuring sales cover fixed and variable costs with zero profit.

Why D is correct:

• The formula for break-even sales revenue is fixed costs divided by contribution sales ratio (or margin ratio), per standard cost-volume-profit analysis.

Why the others are wrong:

• A: Adds variable costs to fixed, ignoring that variables are covered by contribution.
• B: Yields units, not sales value; divides by per-unit contribution.
• C: "Contribution to sales" is undefined; misstates the ratio concept.

Final answer: D