Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point...

Question

Question

Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point in sales dollars i

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Contribution margin=Sales-Variable cost

=(400,000-330,000)=$70,000

Contribution margin ratio=Contribution margin/Sales

=(70,000/400,000)=0.18(Approx)

Breakeven point=Fixed cost/Contribution margin ratio

=(50,000/0.18)

=$277,778(Approx).

Add a comment

Answer 2

Similar Homework Help Questions

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
Boyko, Inc. has fixed costs of $400,000. Total costs, both fixed and variable, are $550,000 when...

Boyko, Inc. has fixed costs of $400,000. Total costs, both fixed and variable, are $550,000 when 40,000 units are produced. Calculate the total costs if the volume increases to 64,000 units. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A. $150,000 B. $550,000 C. $640,000 D. $950,000
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

Sales $ 35,000,000 Operating expenses Variable expenses Fixed expenses $28,000,000 3,500,000 Total expenses 31,500,000 Operating profit...

Sales $ 35,000,000 Operating expenses Variable expenses Fixed expenses $28,000,000 3,500,000 Total expenses 31,500,000 Operating profit $ 3,500,000 1. Determine the breakeven point in sales dollars Breakeven point in sales dollars 17,500,000 2. Determine the required sales in dollars to earn a before-tax profit of $4,500,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Required sales in dollars $ 40,000,000 3. What is the breakeven point in sales dollars if the variable cost increases...
Totalced costs for Toys and Trinkets Incorporated are 584,000. Total costs, including both fixed and variable,...

Totalced costs for Toys and Trinkets Incorporated are 584,000. Total costs, including both fixed and variable, are $105,000 if 268,000 units are produced. The total variable costs at a level of 277,000 units would be (Round intermediate calculations to the nearest cent and the final answer to the nearest dollar) O A $257,362 OB. 586.821 OG $170.541 OD $83,100 Wakin saaturanwar
Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for...

Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for the year total $50,000. The selling price is $4 per pair. Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $30,000. (Do not round intermediate calculations.) 4. Calculate the sales dollars required to make a before-tax...

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.
product is sold at $90 per unit, the variable expense per unit is $30, and total...

product is sold at $90 per unit, the variable expense per unit is $30, and total foxed expenses are $469,000, what are the breakeven sales in dollars? (Do not round intermediary calculations and round your final calculation to the nearest dollar.) O A $324,704 O B. $314,230 OC. $703,500 OD. $10,474
(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 $80,000 Variable Costs $50,000 Contribution Margin $30,000 Fixed Costs $10,000 Operating Income $20,000 The above...

Sales $80,000 Variable Costs $50,000 Contribution Margin $30,000 Fixed Costs $10,000 Operating Income $20,000 The above financial information was the result of selling 8,986 units. What would their new operating income be if they sold 9,288 units? ROUND ANY INTERMEDIATE CALCULATION OF UNIT COSTS TO FOUR DECIMAL PLACES BEFORE CALCULATING YOUR FINAL ANSWER. Round your answer to the nearest whole dollar. Enter your answer without dollar signs or commas.

Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point...

Homework Answers

Add Answer to:
Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point...

Post as a guest

Earn Coins

Sales total $430,000 when variable costs total $300,000 and fixed costs total $100,000. The breakeven point...

Boyko, Inc. has fixed costs of $400,000. Total costs, both fixed and variable, are $550,000 when...

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

Sales $ 35,000,000 Operating expenses Variable expenses Fixed expenses $28,000,000 3,500,000 Total expenses 31,500,000 Operating profit...

Totalced costs for Toys and Trinkets Incorporated are 584,000. Total costs, including both fixed and variable,...

Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for...

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

product is sold at $90 per unit, the variable expense per unit is $30, and total...

(d) Assume that variable costs increase to 45% of the current sales price and fixed costs...

Sales $80,000 Variable Costs $50,000 Contribution Margin $30,000 Fixed Costs $10,000 Operating Income $20,000 The above...

Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point...

Homework Answers

Add Answer to: Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point...

Post as a guest

Earn Coins

Add Answer to:
Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point...