In 2014, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. Samantha's 2014 break-even sales volume was

Question

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 a calculation error in the explanation. The correct break-even point should be calculated as fixed costs divided by the contribution margin ratio, which isn't directly provided here, but the correct answer is $54,000 based on the given options.

In 2014, Samantha's Bath and Body Shop Had Variable Costs