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ssume the following information: Variable cost ratio 80% Total fixed costs $60,000 What is the volume of sales dollars required to break even

User Talbot
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1 Answer

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Answer:

Break-even point (dollars)= $300,000

Step-by-step explanation:

Giving the following information:

Variable cost ratio 80%

Total fixed costs $60,000

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

contribution margin ratio= 1 - 0.8= 0.2

Break-even point (dollars)= 60,000 / 0.2

Break-even point (dollars)= $300,000

User BrunoF
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