QUESTION 32
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 |
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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