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

Question

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

Quizplus · Accepted Answer

To find the break-even point in sales dollars, use the formula: Break-even sales = Total fixed costs / (1 - Variable cost ratio). Here, it is $60,000 / (1 - 0.80) = $300,000.

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