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QUESTION 32 Sophia's Delivery Service charges a $56 service fee. The variable cost per service run...

QUESTION 32

  1. Sophia's Delivery Service charges a $56 service fee. The variable cost per service run is $19. The company's fixed expenses amount to $6000. If the operating income equals fixed expenses, what is the breakeven point in sales revenue for Sophia's Delivery Service?

    $9128

    $6000

    $18,162

    $3081
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Homework Answers

Answer #1

Answer:

The correct answer is $ 9,081 its near to Option A ( $ 9,128 ).

Explanation:

Calculation of contribution margin :

Particulars Amount Amount
Contribution margin per service run

= Service fee - Variable cost per service run

= $56 - $19

= $37

 $37

Calculation of Break point in sales revenue :

Particulars Amount Amount
Breakeven point in sales revenue

= ( Fixed expenses / Contribution margin per service run ) * Service fee per service run

= ( $6,000 / $37 ) * $56

= $9,081

 $ 9,081
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