Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Ratio of contribution margin = ($275 - $187)/$275 = 32%
Break-even point in sales dollars = $345,600/0.32 = $1,080,000.
What is Break-even point?
The amount (total sales revenue) or output level (total units produced) at which a business has recouped all variable and fixed costs is known as the break-even point.
- As a result of Total Cost Equals Total Revenue, there is no profit or loss at break-even.
How do you determine the break-even point in sales volume?
Three values must be known in order to calculate a company's breakeven threshold in sales volume:
- a fixed price: Rent is one example of a cost that is not related to sales volume.
- varying expenses costs, such as the price of producing the good, that are based on sales volume
- Price at which the product is sold.
learn more about breakeven point at: https://brainly.in/question/31484328?msp_srt_exp=6&referrer=searchResults
#SPJ4
Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.