Question
part 1) A construction company wants to figure their gross sales break-even point. If their fixed overhead is $95,000 and the selling expenses are $150,000,
part 1)
A construction company wants to figure their gross sales break-even point. If their fixed overhead is $95,000 and the selling expenses are $150,000, what is their break-even point if costs of contracts is 60% of sales (revenue)? Select the closest answer.
Group of answer choices
$245,000
$612,000
part 2)
A construction company has a fixed overhead of $100,000 and a variable overhead of 2% of revenue. Historically, construction costs have been 90% of revenue. What is the minimum amount of sales required to break even?
Group of answer choices
$100,000
$1,250,000
8%
None of the available answers
$545,800
$925,395
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