Based on the following data,calculate the breakeven point. Sales = $500,000
Transportation = $10,000
Gross Profit = $200,000
Lodging and Meals = $8,000
Salary = $37,000
Other expenses = $5,000
A) $150,000
B) $130,000
C) $100,0003
D) $86,667
E) Cannot be calculated with the information given

Question

Quizplus · Accepted Answer

Gross profit percentage = Gross profit/sales = $200,000/$500,000 = 40%
BEP = Fixed costs/gross profit % = $60,000/40% = $150,000

Based on the Following Data,calculate the Breakeven Point