Question
1. Store sales are $200,000. Variable costs are $120,000 and fixed costs are $40,000. Calculate the breakeven point in sales dollars. Hint: You will need
1. Store sales are $200,000. Variable costs are $120,000 and fixed costs are $40,000. Calculate the breakeven point in sales dollars. Hint: You will need the VC Ratio.
Answer: 200000-120000 = 80,000 / 200000 = 40% CM VC = 120000/200000 = 60% VC
Proof for Practice Problem #1: Please complete the proof of your answer by completing the boxes below:
Sales
Variable Expenses
Contribution Margin
Fixed Expenses
Operating income $0
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Introductory Accounting Finance And Auditing For Lawyers
Authors: Lawrence A. Cunningham
5th Edition
0314912606, 978-0314912602
