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Fixed operating cost 500 thousands dollars its variable costs are 3 dollars per unit and product sales price is 4 dollars what is the company break even point?
Wiki User
∙ 9y ago
Break even point = Fixed cost / contribution margin ratio
Contribution margin ratio = (Sales price - variable cost ) sales price
Contribution margin ratio = (4 - 3 ) / 4 = 25%
Break even point = 500,000 / .25
Break even point = 2,000,000
Wiki User
∙ 9y ago
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The company has a variable cost ratio of 65 and monthly fixed costs of 91000 What is the company's break-even point in terms of sales dollars?
$260,000 So 260,000 x .35 (profit margin) = 91,000 minus fixed costs = 0 (breakeven) Calculated by 91,000 divided by (1 - .65)
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How do you compute total fixed cost assuming a break even in dollars is nine hundred thousand dollar and variable cost is 630000 income tax is forty percent and contribution margin ratio is thirty per?
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