Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance (https://www.askmehelpdesk.com/forumdisplay.php?f=125)
-   -   Break Even Sales Revenue (https://www.askmehelpdesk.com/showthread.php?t=141561)

  • Oct 16, 2007, 07:42 PM
    smartgirl
    Break Even Sales Revenue
    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?
  • Oct 18, 2007, 02:49 PM
    CaptainForest
    SP = 1.00x
    Less: VC = .65x

    CM = .35x
    Less: FC 91,000

    NI = 0

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

    • All times are GMT -7. The time now is 05:51 PM.