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

What do YOU think the answer is?

Break even point (in sales dollars) = fixed cost/contribution margin ratio
Contribution margin ratio = 100% - variable cost ratio
= 1010% - 65%
= 35%
Break even point = 91,000/35%
=$260,000

Sales revenue - (0.65)Sales revenue - $91,000 = $0
(0.35)Sales revenue = $91,000
Sales revenue = $260,000

Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue; $60,000 of variable costs; and $10,000 of fixed costs.

Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue; $60,000 of variable costs; and $10,000 of fixed costs.

If the margin of safety for XZYZ company was 75% of sales, fixed costs were $1,200,000 and variable costs were 75% of sales, what was the amount of actu7ao salesw (dollars)?