In 2016, 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 2016 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, this calculation seems incorrect as it doesn't match any option. The correct break-even sales volume should be calculated by adding fixed costs to the sales needed to cover the loss: $18,000 + $36,000 (since $36,000 is the sales needed to cover the variable costs and loss) = $54,000.

In 2016, Samantha's Bath and Body Shop Had Variable Costs