Last year Easton Corporation reported sales of $810,000, a contribution margin ratio of 40% and a net loss of $33,000. Based on this information, the break-even point was:

a. $843,000

b. $727,500

c. $892,500

d. $975,000

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Acompany using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15, n/45. defective inventory of $40,000 was returned 2 days later, and the accounts were appropriately adjusted. if the company paid the invoice 20 days later, the journal entry to record the payment would be

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