In 2011, Angel's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. Angel's 2011 break-even sales volume was

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Quizplus · Accepted Answer

The break-even sales volume is calculated by adding fixed costs to the net loss and then adding variable costs. So, $18,000 (fixed costs) + $4,500 (net loss) + $27,000 (variable costs) = $49,500. However, to find the break-even point, we need to consider only fixed costs and variable costs, which gives us $18,000 + $27,000 = $45,000. Since the net loss indicates that sales were below break-even, the correct break-even sales volume is $54,000.

In 2011, Angel's Bath and Body Shop Had Variable Costs