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smartgirl
Oct 16, 2007, 07:42 PM
I can not figure this out, can some one please help?

The company has a variable cost ratio of 65% and monthly fixed coxts of $91,000. What is the company's break even point in terms of sales dollars?

CaptainForest
Oct 18, 2007, 02:49 PM
SP = 1.00x
Less: VC = .65x

CM = .35x
Less: FC 91,000

NI = 0

.35x – 91,000 = 0
.35x = 91,000
x = 260,000