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Break Even

Sales for the period were $170,200. The break even sales, which is the sales level required to cover fixed costs, was calculated to be $53,868.20 using the formula of fixed costs divided by one minus the ratio of variable costs to total sales.

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Feras Mehmood
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22 views

Break Even

Sales for the period were $170,200. The break even sales, which is the sales level required to cover fixed costs, was calculated to be $53,868.20 using the formula of fixed costs divided by one minus the ratio of variable costs to total sales.

Uploaded by

Feras Mehmood
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sales

Total sales(170200)
Break even sales (53868.2)

Data:

Sales= 170200

Fixed cost=50200

Variable cost=11590

Formula:

Break even sales= Fixed cost/ (1-Variable cost/sales)

BE sales = 50200/ (1-11590/170200)

B.E sales= 53868.2

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