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please answer req. 3 asap Victor Medical Supply is a retailer of home medical equipment. Last year, Victor's sales revenues totaled $6,400,000. Total expenses were
please answer req. 3 asap
Victor Medical Supply is a retailer of home medical equipment. Last year, Victor's sales revenues totaled $6,400,000. Total expenses were $2,800,000. Of this amount, approximately $1,792,000 were variable, while the remainder were fixed. Since Victor's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements. vaics I Venue I IACU CAPCICS Operaung income The operating income is $ 3,600,000 Requirement 2. What is Victor's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Contribution margin Sales revenue = Contribution margin ratio (Enter the ratio as a whole percent.) The contribution margin ratio is 72 %. Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) Begin by identifying the formula to compute the breakeven point in sales dollars. ( Fixed expenses + Operating income ) / Contribution margin ratio = Breakeven sales in dollars (Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is $Step by Step Solution
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