Last year easton corporation reported sales of $870,000, a contribution margin ratio of 40% and a net loss of $39,000. based on this information, the break-even point was:

First of all, the fixed expenses will be calculated -

Profit = (Sales * Contribution Margin) - Fixed expenses

Loss = $ 39,000, Sales = $ 870,000 and Contribution margin = 40 %

Using the equity of Profit -

- $ 39,000 = ( $ 870,000 * 40 %) - Fixed expenses

Fixed Expenses = $ 348,000 + $ 39,000 = $ 387,000

Now, Break-even point will be calculated as -

Break-even point = Fixed cost ÷ Contribution Margin

Break-even point = $ 387,000 ÷ 40 % = $ 967,500

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.