Last year Easton Corporation reported sales of $480,000, a contribution margin ratio of 25% and a net loss of $16,000.Based on this information, the break-even point was:

A) $435,000
B) $544,000
C) $506,000
D) $600,000

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs and contributes to covering fixed expenses and generating profit.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative profit.

Break-Even Point

The point at which total costs and total revenues are exactly equal, resulting in no net profit or loss for a business.