What is the survival revenues breakeven based on: cash fixed costs = $400,000 and a variable cost revenue ratio = .65?
A) $460,500
B) $615,385
C) $1,142,857
D) $2,000,334
E) $4,000,667

Question

Quizplus · Accepted Answer

The survival revenues breakeven point is calculated by dividing the cash fixed costs by (1 - variable cost revenue ratio). Thus, $400,000 / (1 - 0.65) = $1,142,857.

What Is the Survival Revenues Breakeven Based On: Cash Fixed