Variable expenses for Alpha Corporation are 40% of sales.What are sales at the break-even point, assuming that fixed expenses total $150,000 per year:

A) $250,000
B) $375,000
C) $600,000
D) $150,000

Variable Expenses

Expenses that vary directly with changes in business activity level, such as sales volume or production quantity.

Fixed Expenses

Expenses that remain constant regardless of any variations in the volume of production or sales.

Break-Even Point

The level of sales at which profit is zero.