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    coledebbie's Avatar
    coledebbie Posts: 3, Reputation: 0
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    #1

    Jul 11, 2007, 04:26 PM
    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
    richsaha2007's Avatar
    richsaha2007 Posts: 53, Reputation: 6
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    #2

    Jul 11, 2007, 09:46 PM
    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
    grr82bntx's Avatar
    grr82bntx Posts: 14, Reputation: 2
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    #3

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

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