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waylene
Apr 21, 2007, 01:37 PM
The company has a variable cost ratio of 65% and monthly fixed cost of $91,000. What is the company’s break even point in terms of sales dollars?
CaptainForest
Apr 21, 2007, 02:26 PM
What do YOU think the answer is?
bunnyKutty
May 19, 2007, 10:37 AM
Break even point (in sales dollars) = fixed cost/contribution margin ratio
Contribution margin ratio = 100% - variable cost ratio
= 1010% - 65%
= 35%
Break even point = 91,000/35%
=$260,000
grr82bntx
Aug 18, 2007, 03:25 PM
Sales revenue - (0.65)Sales revenue - $91,000 = $0
(0.35)Sales revenue = $91,000
Sales revenue = $260,000