The manager of Kimas Food Mart estimates operating costs for the year will include $900,000 in fixed costs Required a Find the break even point in sales dollars with a contribution margin ratio of 40 percent b Find the break even point in sales dollars with a contribution margin ratio of 25 percent...

a Break even point is sales dollars Fixed costs Contribution m ...

The manager of Kimas Food Mart estimates operating costs for the year will include $900,000 in fixed

Question:

The manager of Kima’s Food Mart estimates operating costs for the year will include $900,000 in fixed costs.

Required
a. Find the break-even point in sales dollars with a ratio of 40 percent.
b. Find the break-even point in sales dollars with a ratio of 25 percent.
c. Find the sales dollars required to generate a profit of $200,000 for the year assuming a ratio of 40 percent.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...