If the fixed costs are $500,000 and variable costs are 60% of the break-even sales, what...

Question

Question

If the fixed costs are $500,000 and variable costs are 60% of the break-even sales, what will be the sales revenue?

Answer 1

Answer #1

At break even point, there is no profit or no loss. At this point contribution margin is equal to the fixed cost.

Sales Revenue = Fixed costs / Contribution margin ratio

Contribution margin ratio = 100% - variable cost ratio

= 100% - 60%

= 40%

Sales Revenue = $500,000 / 40%

= $1,250,000

Answer 2

Similar Homework Help Questions

6 Fixed costs Variable costs as a % of sales Desired net income 200,000 20% 500,000 Compute: Break even in $$ Required...

6 Fixed costs Variable costs as a % of sales Desired net income 200,000 20% 500,000 Compute: Break even in $$ Required sales in $$ to earn desired net income 7 Fixed costs Variable costs as a % of sales Current net income Desired net income 300,000 20% 500,000 1,000,000 Compute: Break even in $$ Current sales in $$ Required sales in $$ to earn desired net income
BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit,...

BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit, and the product's sales price is $4.80. What is the company's break- even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number. units
(15-1). Break-Even Quantity Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50...

(15-1). Break-Even Quantity Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50 per unit. If it sells the product for $75 per unit, what is the break-even quantity? F = $500,000 V = $50 P = $75 QBE

Effect of taxes on break-even and target volume Machine INC desires an after-tax income of $500,000. It has fixed costs of $2,500,000, a unit sales price of $300, and unit variable costs of $150; it...

Effect of taxes on break-even and target volume Machine INC desires an after-tax income of $500,000. It has fixed costs of $2,500,000, a unit sales price of $300, and unit variable costs of $150; it is in the 40% tax bracket. Required: A. What amount of the pre-tax income is needed to earn an after-tax income B. What target volume sales revenue must be reached to earn the $500,000 C. Assuming that this is a single-product firm, how many units...
8. If fixed costs are $850,000 and variable costs are 60% of sales, what is the...

8. If fixed costs are $850,000 and variable costs are 60% of sales, what is the break-even point (dollars)? a. $2,125,000 b. $340,000 c. $3,400,000 d. $1,416,666
break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs...

break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?

Select all that apply Company A has sales of $500,000 variable costs of $350,000, and fixed...

Select all that apply Company A has sales of $500,000 variable costs of $350,000, and fixed costs of $150,000. Company A has: a contribution margin equal to fixed costs reached the break even point eared a net operating profit incurred a net operating loss
Select all that apply Company A has sales of $500,000, variable costs of $350,000, and fixed...

Select all that apply Company A has sales of $500,000, variable costs of $350,000, and fixed costs of $150,000. Company A has Da contribution margin equal to fixed costs O reached the break-even point earned a net operating profit incurred a net operating loss
costs $123, what are the break-even sales (units) if fixed If fixed costs are $1,451,000, the unit selling price is...

costs $123, what are the break-even sales (units) if fixed If fixed costs are $1,451,000, the unit selling price is $209, and the unit variable costs are increased by $31,700? Ca. 25,861 units b. 13,793 units c. 17,241 units Huld. 20,689 units

(Break-even analysis) You have developed the income statement Sales 51,100,865 Variable costs (24,569,000) Revenue before fixed...

(Break-even analysis) You have developed the income statement Sales 51,100,865 Variable costs (24,569,000) Revenue before fixed costs 26,531,865 Fixed costs (14,254,000) EBIT 12,277,865 Interest expense (1,054,688) Earnings before taxes 11,223,177 Taxes at 22% (2,469,099) Net income ˜NI for the Hugo Boss Corporation. It represents the most recent year's operations, which ended yesterday. Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions: a. What is the firm's break-even point in...