Break-even sales revenue calculation using contribution margin Steps:

• Compute contribution margin ratio: $480,000 contribution ÷$800,000 sales revenue = 0.6 (60%).
• Apply break-even formula: fixed production costs ÷ contribution margin ratio = $300,000 ÷ 0.6.
• Perform division: $300,000 ÷ 0.6 =$500,000.
• Verify: At $500,000 sales, contribution = 0.6 ×$500,000 = $300,000, covering fixed costs exactly.

Why A is correct:

• Break-even sales revenue equals fixed costs divided by contribution margin ratio per standard cost-volume-profit analysis formula.

Why the others are wrong:

• B $700,000: Assumes incorrect contribution margin ratio of ~42.9$300,000 ÷ $700,000), ignoring given 60% ratio.

Final answer: A