Question

Company A's fixed costs were Rs 45,012, its variable costs were Rs 24,000, and its sales...

Company A's fixed costs were Rs 45,012, its variable costs were Rs 24,000, and its sales were Rs 80,012. Required: Find company's break-even point in sales-dollars? Immersive Reader

Homework Answers

Answer #1

Fixed costs = Rs 45,012

Variable costs = Rs 24,000

Sales = Rs 80,012

Break-even point in sales-dollars = ?

Contribution margin = Sales - Variable costs

= 80,012 - 24,000

= $56,012

Contribution margin ratio = Contribution margin/Sales

= 56,012/80,012

= 70% (rounded to whole percentage)

Break even sales in dollars = Fixed cost/Contribution margin ratio

= 45,012/70%

= Rs. 64,303 (rounded to whole Rs.)

Note. Exact answer may slightly differ due to rounding off.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Exercise 6.29 b-c Embleton Company estimates that variable costs will be 80% of sales, and fixed...
Exercise 6.29 b-c Embleton Company estimates that variable costs will be 80% of sales, and fixed costs will total $384,000. The selling price of the product is $6.    Calculate the break-even point in units and dollars. Break-even point units Break-even point $ Assuming actual sales are $2,560,000, calculate the margin of safety in dollars and as a ratio. Margin of safety $ Margin of safety ratio %
If fixed costs are $140,000 and the variable cost is 75% of sales, what is the...
If fixed costs are $140,000 and the variable cost is 75% of sales, what is the break-even point in sales dollars?
. Assume that the CDE Company has yearly Fixed costs of $30,000 and its Variable costs...
. Assume that the CDE Company has yearly Fixed costs of $30,000 and its Variable costs are $30,000, which are 60% of its Sales. Calculate: [Use ONLY formula for your calculations. Do NOT use algebra] Question: Its profit or loss when its total sales are $110,000.      b. The sales level (dollars) required to break-even.      c. The sales needed to make a profit of $35,000. 2. ABC Company manufactures and distributes Product A. An extract from the 20X5 statement...
If fixed costs are $900,000 and variable costs are 66% of sales, what is the break-even...
If fixed costs are $900,000 and variable costs are 66% of sales, what is the break-even point in sales dollars? a.$2,647,059 b.$3,547,059 c.$594,000 d.$1,494,000
Howard Company sells its product for $40. The variable costs are $24. The fixed costs are...
Howard Company sells its product for $40. The variable costs are $24. The fixed costs are $80,000. What is the contribution margin? What is the break even in units? What is the break even in sales dollars? What is the break even in units if they want $160,000 in profits? A. 15000 B. $200,000 C. $24 D. 16 E. 5000 F. 3333 G. 10000
Crane Corporation has collected the following information after its first year of sales. Sales were $1,600,000...
Crane Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $240,000 (40% variable and 60% fixed), direct materials $514,000, direct labor $270,800, administrative expenses $280,000 (20% variable and 80% fixed), and manufacturing overhead $376,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10%...
Break-Even Point and Target Profit Measured in Sales Dollars (Single Product). Nellie Company has monthly fixed...
Break-Even Point and Target Profit Measured in Sales Dollars (Single Product). Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25 (these data are the same as the previous exercise): Required: Calculate the contribution margin ratio. Find the break-even point in sales dollars. What amount of sales dollars is required to earn a monthly profit of $60,000?
Oak Cabinet Company has fixed costs of $265,000, sells its units for $66, and has variable...
Oak Cabinet Company has fixed costs of $265,000, sells its units for $66, and has variable costs of $36 per unit. a. Compute the break-even point. b. The CFO comes up with a new plan to cut fixed costs to $200,000. However, more labor will now be required, which will increase variable costs per unit to $39. The sales price will remain at $66. What is the new break-even point? c. Under the new plan, what is likely to happen...
Sales Price: $50.00 per unit Variable Costs: $20.00 per unit Total Fixed Costs: $90,000 What is...
Sales Price: $50.00 per unit Variable Costs: $20.00 per unit Total Fixed Costs: $90,000 What is the break-even point in sales dollars?
16. Suppose the break-even sale is Rs. 10 Lakhs. Fixed Costs are Rs. 4 Lakhs: Compute:...
16. Suppose the break-even sale is Rs. 10 Lakhs. Fixed Costs are Rs. 4 Lakhs: Compute: a) Contribution Sales Ratio; b) Sales Price per unit if variable costs are Rs. 12 per unit c) Margin of safety if 80,000 units are sold.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT