Blythe Company has provided the following information:

What is the amount of sales in dollars required for Blythe to break even? (Round any percentages to two decimal places and your final answer to the nearest dollar. )

Question

Blythe Company has provided the following information:

What is the amount of sales in dollars required for Blythe to break even? (Round any percentages to two decimal places and your final answer to the nearest dollar. )

Quizplus · Accepted Answer

B)Required sales in dollars = (Fixed costs + Target profit)/ Contribution margin ratio
Contribution margin ratio = Contribution margin / Net sales revenue
 11ea86ed_2ba2_9e4a_8b27_b18aa35963a6_TB3056_00 Contribution margin ratio = ($22 / $40)× 100 = 55.00%
Required sales in dollars = ($12,800 + 0)/ 55.00% = $23,273

Blythe Company Has Provided the Following Information