Fixed costs are $137,500 and variable costs are 45%. What is the breakeven sales revenue?

Question

Question

business accounting

Answer 1

Answer #1

Variable costs = 45%

Contribution Margin ratio = 100 - variable cost %

Contribution Margin ratio = 100 - 45

Contribution Margin ratio = 55%

Break even sales revenue = Fixed Cost / Contribution Margin ratio

Break even sales revenue = $137,500 / 0.55

Break even sales revenue = $250,000

Add a comment

Answer 2

Similar Homework Help Questions

At the operating breakeven point, the sales revenue is equal to the sum of the fixed...

At the operating breakeven point, the sales revenue is equal to the sum of the fixed and variable operating costs. True False
4. What is the breakeven in units based on the information below: Sales Variable Costs Fixed...

4. What is the breakeven in units based on the information below: Sales Variable Costs Fixed Costs $12 per unit $8 per unit $240,000
(d) Assume that variable costs increase to 45% of the current sales price and fixed costs...

(d) Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $12,000 per month. If Sunland were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 6%, what would be the new annual operating income? (Round sales price to 2 decimal places, eg. 52.75 and final answer to decimal places, eg. 5,275.) The new annual operating income Toython 3 of 4...

Sales total $300,000 when variable costs total $180,000 and fixed costs are $60,000. Breakeven sales total:...

Sales total $300,000 when variable costs total $180,000 and fixed costs are $60,000. Breakeven sales total: A. $300,000 B. $150,000 C. $ 60,000 D. $ 90,000 E. Cannot be determined with information provided.
Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point...

Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point in sales dollars is - (Round interim calculations to two decimal places and the final answer to the nearest dollar.) O A. $1,833,333 OB. $388,889 OC. $560,000 OD. $277,778
Sales total $430,000 when variable costs total $300,000 and fixed costs total $100,000. The breakeven point...

Sales total $430,000 when variable costs total $300,000 and fixed costs total $100,000. The breakeven point in sales dollars is (Round interim calculations to two decimal places and the final answer to the nearest dollar.) O A. $1,000,000 O B. $433,333 OC. $333,333 OD. $559,000

When fixed costs are $80000 and variable costs are 60% of the selling price, then breakeven...

When fixed costs are $80000 and variable costs are 60% of the selling price, then breakeven sales are ________. (Round the final answer to the nearest dollar.) A. $200000 B. $133333 C. $112000 D. $128000
5 Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling...

5 Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs $274,000 93,000 67,000 38,000 33,000 What is this company's contribution margin? Multiple Choice o $43.000 $76.000 5114000 $143.000 6 Sales revenue (1,700 units * $19.20 per unit) Cost of goods sold (variable; 1,700 units x $9.20 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (1,700 units * $1.20 per unit) Net income $ 32,640 (15,640) (3,200)...
Star Jewelry sells 500 units resulting in $75,000 of sales revenue, $28,000 of variable costs, and...

Star Jewelry sells 500 units resulting in $75,000 of sales revenue, $28,000 of variable costs, and $18,000 of fixed costs. Breakeven point in units is approximately:

Wallace Incorporated sells its products for $550 per unit. Variable costs are currently 20% of sales revenue. Fixed expe...

Wallace Incorporated sells its products for $550 per unit. Variable costs are currently 20% of sales revenue. Fixed expenses are $198,000 per year. What is the breakeven point in units at the current selling price? 440 units 1800 units 450 units 300 units