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You can change the numbers used between the units and the dollars. This will help you to know the information that is most valuable for your reports.

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Q: How can the mathematical equation for break-even sales show both sales units and sales dollars?
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How can the mathematical equation for break-even sales show both sales units sales dollars?

Formula for break even point in dollars = Fixed Cost / contribution margin formula for break even point in units = fixed cost / contribution margin ratio formula for contribution margin ratio = (sales - variable cost) / sales


How do you calculate the breakeven point?

Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost


If the sale price per unit is 21.50 the variable expense per unit is 16.75 and the breakeven sales in dollars is 634250 what are the total fixed expenses?

Total fixed expenses = breakeven sales * Contribution margin ratio Contribution margin ratio = (21.5 - 16.75 ) / 21.5 = 0.22 Total fixed expenses = 634250 * 0.22 = 139535


How do you calculate the margin of safety?

total sales - breakeven= marginal of safety


Company has a variable cost ratio of 65 and monthly fixed costs of 91000 what is the break even point in terms of sales dollars?

0.35 x A = 91,000 A = 91,000/.35 = 260,000 Therefore, sales at breakeven must be $260,000.


Can someone help me solve this breakeven problem The break-even sales revenue for a product costing 25 per unit is 550000 If budgeted sales are 10000 units what is the margin of safety?

Budgeted sales = 10000 * 25 = 250000 breakeven sales = 550000 margin of safety = 550000 - 250000 = -300000


Sales volume required to breakeven?

That level of sales at which profit if the business is zero or revenue earned is equal to cost incurred.


What would the sales be if the company desires a profit of 104300 in sales and the break even point in dollar sale for Rice Company is 352000 and the company contribution margin ratio is 35 percent?

Break even sales = fixed cost + desired profit / contribution margin ratio Fixed cost = breakeven point sales * contribution margin Fixed cost = 352000 * 0.35 = 123200 Breakeven point = (123200 + 104300 ) / 0.35 Breakeven point = 332857


Break Even Sales - Formula in Cost Accounting?

Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales


What is the break even in units if a firm sells 20000 units at 40 each variable costs per unit are 10 and total fixed costs equal 120000?

1. Breakeven point = fixed cost/ contribution margin ratio contribution margin ratio: (sales - variable cost)/sales Sales = 20000 * 40 = 800000 Less: Variable cost = 20000 * 10 = 200000 Contribution margin = 600000 Contribution margin ratio = 600000/800000 = .75 Breakeven point in dollars = 120000/.75 = $160000 breakeven point in units = 160000 / 40 = 4000


How do you compute break even analysis?

breakeven = fixed cost / contribution margin ratiocontribution margin ratio = sales - variable cost / sales


Is the method of determining the minimum sales volume needed at a certain price level to cover all costs return on sales?

breakeven analysis