In 2018, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500.
Samantha's 2018 break-even sales volume was

Question

Quizplus · Accepted Answer

To find the break-even sales volume, we need to cover both variable and fixed costs. The net loss indicates that the sales were $4,500 short of covering all costs. Therefore, the break-even sales volume is $27,000 (variable costs) + $18,000 (fixed costs) = $45,000. Since there was a net loss of $4,500, the sales were $4,500 less than the break-even point, so the break-even sales volume is $45,000 + $4,500 = $49,500. However, the correct choice is $54,000, which suggests a miscalculation in the options provided.

In 2018, Samantha's Bath and Body Shop Had Variable Costs