Angel's Bath and Body Shop had variable costs of $27,000,fixed costs of $18,000,and a net loss of $4,500.
What was Angel's 2011 break-even sales volume?

Question

Angel's Bath and Body Shop had variable costs of $27,000,fixed costs of $18,000,and a net loss of $4,500. 
What was Angel's 2011 break-even sales volume?

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 the sum of variable costs, fixed costs, and the net loss: $27,000 + $18,000 + $4,500 = $49,500. However, the correct choice is $54,000, which suggests the calculation should consider the contribution margin ratio or other factors not directly provided in the question.

Angel's Bath and Body Shop Had Variable Costs of $27,000,fixed