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    philgodd's Avatar
    philgodd Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Nov 22, 2010, 05:48 PM
    break-even point analysis help!!
    help! I'm trying to figure out how much each dollar in expected sales contributes towards covering fixed costs?

    Expected sales revenue: $127,750

    Variable costs: $ 40,000

    Fixed costs: $ 50,000
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Nov 22, 2010, 11:52 PM
    Contribution is sales less variable costs. Divide contribution with expected sales and there is your answer
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