Here is the following corporation data: Expected sales = $2,500,000, Expected variable costs = $1,300,000 Expected...

Question

Question

Here is the following corporation data: Expected sales = $2,500,000, Expected variable costs = $1,300,000 Expected...

Here is the following corporation data:

Expected sales = $2,500,000,

Expected variable costs = $1,300,000

Expected fixed costs = $240,000.

What is the breakeven in sales dollars?

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer: Breakeven in sales dollars= $461,538.46

Explanation:

Breakeven point is the level at which total sales revenue=total expenses(Fixed costs+variable costs).

Breakeven point in $=Fixed Costs/Gross profit margin

Gross profit margin=variable costs/sales=1,300,000/2,500,000=0.52

putting values in formula;

=240,000/0.52=$461,538.46

If helpful, Thumbs UP please:)

Add a comment

Answer 2

Similar Homework Help Questions

valude A company provided the following data: Sales Variable costs Fixed costs Expected production and sales...

valude A company provided the following data: Sales Variable costs Fixed costs Expected production and sales in units $540,000 378,000 120,000 40,000 units What is the break-even point in sales dollars? O a. $150,000 b. $112,500 c. $498,000 Od. $171,429 e. $400,000
Consider the following information $2,500,000 900,000 1,600,000 700,000 900,000 200,000 700,000 210,000 490,000 Sales Variable costs...

Consider the following information $2,500,000 900,000 1,600,000 700,000 900,000 200,000 700,000 210,000 490,000 Sales Variable costs Revenue before fixed costs Fixed costs EBIT Interest expense Earnings before taxes Taxes (30%) Net income What is the break-even point in sales dollars for the firm? (do not round up/down your answer)
The following data apply to Beta Corporation for a given period: Variable costs per unit $3.50 Contribution ma...

The following data apply to Beta Corporation for a given period: Variable costs per unit $3.50 Contribution margin per unit $1.50 Breakeven sales (present volume) $1,000,000 Beta wants to sell an additional 50,000 units at the same selling price. Variable costs per unit are not likely to change, but Beta may incur additional fixed costs. By how much can fixed costs increase before the additional 50,000 units of sales are not worthwhile?

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000...

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $1,360,600; direct labor $260,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $322,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10%...
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
A recent income statement of Safety Corporation reported the following data: Sales revenue Variable costs Fixed...

A recent income statement of Safety Corporation reported the following data: Sales revenue Variable costs Fixed costs $7,416,000 5,616,000 2,270,000 If these data are based on the sale of 18,000 units, the break-even point would be:

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000...

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $1,370,600; direct labor $250,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $322,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10%...
Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000...

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $1,351,000; direct labor $250,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $350,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10%...
A firm has fixed operating costs of $150,000, total 18. sales of $1,500,000, and total variable...

A firm has fixed operating costs of $150,000, total 18. sales of $1,500,000, and total variable costs of $1,275,000. With this data, the firm's operating breakeven point during the year, in dollars, is $150,000 $176,471 $1,000,000 $1,425,000 а. b. C.

I. A company sells a product which has a unit sales price of $10, unit variable...

I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...

Here is the following corporation data: Expected sales = $2,500,000, Expected variable costs = $1,300,000 Expected...

Homework Answers

Add Answer to:
Here is the following corporation data: Expected sales = $2,500,000, Expected variable costs = $1,300,000 Expected...

Post as a guest

Earn Coins

valude A company provided the following data: Sales Variable costs Fixed costs Expected production and sales...

Consider the following information $2,500,000 900,000 1,600,000 700,000 900,000 200,000 700,000 210,000 490,000 Sales Variable costs...

The following data apply to Beta Corporation for a given period: Variable costs per unit $3.50 Contribution ma...

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000...

4. What is the breakeven in units based on the information below: Sales Variable Costs Fixed...

A recent income statement of Safety Corporation reported the following data: Sales revenue Variable costs Fixed...

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000...

Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000...

A firm has fixed operating costs of $150,000, total 18. sales of $1,500,000, and total variable...

I. A company sells a product which has a unit sales price of $10, unit variable...

Here is the following corporation data: Expected sales = $2,500,000, Expected variable costs = $1,300,000 Expected...

Homework Answers

Add Answer to: Here is the following corporation data: Expected sales = $2,500,000, Expected variable costs = $1,300,000 Expected...

Post as a guest

Earn Coins

Add Answer to:
Here is the following corporation data: Expected sales = $2,500,000, Expected variable costs = $1,300,000 Expected...