A construction company has a fixed overhead of $60,000 and a variable overhead of 2.5% of revenue.

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A construction company has a fixed overhead of $60,000 and a variable overhead of 2.5% of revenue. Historically, construction costs have been 88% of revenue. What is the minimum amount of sales that are required to break even?

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Construction accounting and financial management

ISBN: 978-0135017111

2nd Edition

Authors: Steven j. Peterson

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Question Posted: Mar 27, 2013 06:44 AM

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A construction company has a fixed overhead of $60,000 and a variable overhead of 2.5% of revenue.

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Using Eq 107 to find the contribution margin ratio we get the following CM Ratio 1 C...View the full answer

Construction accounting and financial management

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