Find the NOPAT breakeven revenues NR) given the following information: total operating fixed costs = $75,000; variable costs = $150,000; and sales = $200,000.
A) $100,000
B) $240,000
C) $300,000
D) $400,000
E) $460,000

Question

Quizplus · Accepted Answer

NOPAT breakeven revenues occur when operating income is zero. The contribution margin is sales minus variable costs, which is $200,000 - $150,000 = $50,000. To cover the fixed costs of $75,000, the sales must be $75,000 / ($50,000 / $200,000) = $300,000.

Find the NOPAT Breakeven Revenues NR) Given the Following Information