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  • Jul 11, 2007, 04:26 PM
    coledebbie
    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
  • Jul 11, 2007, 09:46 PM
    richsaha2007
    Quote:
    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



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

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