Lake sales had 2,000,000 in sales last month. The contribution margin was 40% and operating profits...

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Lake sales had 2,000,000 in sales last month. The contribution margin was 40% and operating profits...

Lake sales had 2,000,000 in sales last month. The contribution margin was 40% and operating profits was $165,000. What is Lakes break even sales volume?

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Answer 1

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Sales	$2,000,000
Contribution margin ratio	40%
Operating profit	$165,000

Sales	$2,000,000
Contribution margin	$800,000
Operating profit	$165,000
Fixed Cost	$635,000

Break even sales	Fixed cost/Contribution margin ratio
	$1,587,500

Hence break even sales is $1,587,500

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Lake sales had 2,000,000 in sales last month. The contribution margin was 40% and operating profits...

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Lake Sales had $1,800,000 in sales last month. The contribution margin ratio was 40% and operating...

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Lake sales had 2,000,000 in sales last month. The contribution margin was 40% and operating profits...

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Lake sales had 2,000,000 in sales last month. The contribution margin was 40% and operating profits...