Assume the following information: $\begin{array}{ll}
\text { Variable cost ratio } & 80 \% \
\text { Total fixed costs } & \$ 60,000
\end{array}$ What volume of sales dollars is needed to break even?

Question

Quizplus · Accepted Answer

The break-even point in sales dollars can be found using the formula: Break-even Sales = Total Fixed Costs / (1 - Variable Cost Ratio). Plugging in the given numbers: $60,000 / (1 - 0.80) = $60,000 / 0.20 = $300,000.

Assume the Following Information Variable cost ratio 80% Total fixed costs $60,000\begin{array}{ll}\text { Variable cost ratio } & 80 \% \\\text { Total fixed costs } & \$ 60,000\end{array} Variable cost ratio Total fixed costs ​80%$60,000​

Assume the Following Information $\begin{array}{ll}\text { Variable cost ratio } & 80 \% \\\text { Total fixed costs } & \$ 60,000\end{array}$