answer)$1783673
calculation
break even point in dollar sales=fixed cost/pv ratio=874000/49%=$1783673
pv ratio=contribution/sales=1735000/3540000=49%
particulars | amount($) | |
sales | 3540000 | |
less:variable costs:- | ||
direct material | 504000 | |
direct labour | 270000 | |
variable overhead | 277000 | |
selling and general & admin.exp(variable) | 754000 | 1805000 |
contribution | 1735000 | |
less:fixed costs | ||
fixed overhead | 620000 | |
selling and general & admin.exp(fixed) | 254000 | 874000 |
operating income | 861000 |
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