Answer 1
Break even Point = Fixed Cost / Contribution ratio |
=198000/53.61% |
= $ 369,334 |
Answer 2
Desired sales (in $) = (Fixed Cost + Profit)/ Contribution ratio |
= (198000 + 206896.55) / 53.61% |
= $ 755,263 |
Answer 3
No
Calculations:
Contribution = Sales – variable cost |
=$ 180,000- $ 66,000- $ 17,500 |
= $ 96,500 |
Contribution ratio = Contribution / Sales |
= $ 96,500 / $ 180,000 |
= 53.61 % |
In case of any doubt, please comment.
Calculator Cost-Volume-Profit, Margin of Safety Steven Kissick is a Kingston-based lawyer who has been in practice...
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