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Last month Stagecoach Company had a $64,000 loss on sales of $320,000. Fixed costs are $150,000 a month. What sales revenue i
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Answer #1

Correct answer------------$540,000

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It seems like none of the answer exactly match my calculations but $540,000 is the closest.

Working

Income Statement
Sales   $    320,000.00
Variable cost (balancing figure) $    234,000.00
Contribution margin $      86,000.00
Fixed cost $    150,000.00
Income $    (64,000.00)

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A Sales $        320,000.00
B Variable Expense $        234,000.00
C=A-B Contribution margin $           86,000.00
D=C/A CM ratio 26.9%
E Fixed cost $        150,000.00
F=E/D Breakeven sales $        558,139.53
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