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J Chromatogr A 1488:93103

Proc Natl Acad Sci USA (2017) 114(4):E506e13

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(The sales mix here is measured in sales dollars for each department as a proportion of total sales dollars.) Now that you know the weighted average contribution margin ratio for Amys Accounting Service, it is possible to calculate the break-even point in sales dollars: Break-even point in sales dollars=(Total fixed costs + Target profit) / Weighted average contribution margin ratio Break-even point in sales dollars=$120,000 / .45 =$266,667 (rounded) Amys Accounting Service must achieve $266,667 in sales to break even.The weighted average contribution margin ratio can also be found by multiplying each departments contribution margin ratio by its proportion of total sales