Use the following information to compute the survival revenues breakeven: cash fixed costs = $400,000 and a variable cost revenue ratio = 0.65.
A)$460,500
B)$615,385
C)$1,142,857
D)$2,000,334

Question

Quizplus · Accepted Answer

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

Use the Following Information to Compute the Survival Revenues Breakeven