Assume the following information: What volume of sales dollars is needed to break even?
$$\begin{array} { l r }
\text { Variable cost ratio } & 80 \% \
\text { Total fixed costs } & \$ 60,000
\end{array}$$
A)$12,000
B)$48,000
C)$75,000
D)$300,000

Question

Assume the following information: What volume of sales dollars is needed to break even?
$$\begin{array} { l r } 
\text { Variable cost ratio } & 80 \% \
\text { Total fixed costs } & \$ 60,000
\end{array}$$
A)$12,000
B)$48,000
C)$75,000
D)$300,000

Quizplus · Accepted Answer

The break-even point in sales dollars can be found using the formula: Break-even Sales = Total Fixed Costs / (1 - Variable Cost Ratio). Plugging in the given numbers: $60,000 / (1 - 0.8) = $60,000 / 0.2 = $300,000.

Assume the Following Information: What Volume of Sales Dollars Is Variable cost ratio 80% Total fixed costs $60,000\begin{array} { l r } \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: What Volume of Sales Dollars Is $\begin{array} { l r } \text { Variable cost ratio } & 80 \% \\\text { Total fixed costs } & \$ 60,000\end{array}$