If the Ace Printing Company has an annual turnover of $600,000, VC of $260,000 and fixed...
If the Ace Printing Company has an annual turnover of $600,000, VC of $260,000 and fixed cost of $160,000, what will be its break even sales point?
Homework Answers
Contribution margin ratio = (600000-260000)/600000
Hence,
Break even sales point = 160000/Contribution margin ratio = 160000/((600000-260000)/600000)
Break even sales point = $282352.9 or $282353
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