Correct Answer:
Break even in sales dollars |
$ 51,467,400.00 |
Working:
Break even in sales dollars |
|||
A |
sales revenue |
$ 79,700,000.00 |
|
Less: variable cost |
|||
B |
Variable cost of goods sold |
$ 32,677,000.00 |
|
C |
Sales commission @ 9% (79,700,000 * 0.09) |
$ 7,173,000.00 |
|
D =B+C |
Total variable cost |
$ 39,850,000.00 |
|
E = A-D |
Contribution margin |
$ 39,850,000.00 |
|
F=E/A*100 |
contribution margin ratio |
50% |
|
Fixed cost |
|||
G |
Fixed cost of goods sold |
$ 8,500,000.00 |
|
H |
Fixed selling and marketing expenses |
$ 10,060,700.00 |
|
K |
Additional Fixed cost |
$ 7,173,000.00 |
|
I=G+H+K |
Total fixed cost |
25,733,700.00 |
|
J=I/F |
Break even in sales dollars |
$ 51,467,400.00 |
End of answer.
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