coledebbie Posts: 3, Reputation: 0 New Member #1 Jul 11, 2007, 04:26 PM
Accounting:concepts and application
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 Posts: 53, Reputation: 6 Junior Member #2 Jul 11, 2007, 09:46 PM
Originally Posted by coledebbie
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

 grr82bntx Posts: 14, Reputation: 2 New Member #3 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

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