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    smartgirl's Avatar
    smartgirl Posts: 3, Reputation: 1
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    #1

    Oct 16, 2007, 07:42 PM
    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?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Oct 18, 2007, 02:49 PM
    SP = 1.00x
    Less: VC = .65x

    CM = .35x
    Less: FC 91,000

    NI = 0

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