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coledebbie
Jul 11, 2007, 04:26 PM
the company has a variable cost ratio of 65% and monthly fixed costs of $91000. What is the company's break even point in terms of sale dollars
richsaha2007
Jul 11, 2007, 09:46 PM
the company has a variable cost ratio of 65% and monthly fixed costs of $91000. What is the company's break even point in terms of sale dollars


sales: 100%
-costs: 65%

= contribution margin: 35%


$91000/35% = $260,000



Answer: $260,000
grr82bntx
Aug 18, 2007, 03:28 PM
Sales revenue - (0.65)Sales revenue - $91,000 = $0
(0.35)Sales revenue = $91,000
Sales revenue = $260,000