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
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
Quote:
Originally Posted by coledebbie
sales: 100%
-costs: 65%
= contribution margin: 35%
$91000/35% = $260,000
Answer: $260,000
Sales revenue - (0.65)Sales revenue - $91,000 = $0
(0.35)Sales revenue = $91,000
Sales revenue = $260,000
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