answersLogoWhite

0

Breakeven revenue is the amount required to make $0 profit once total fixed and variable costs have been deducted so the answer is 2160000 + 3000000 = $5160000

User Avatar

Wiki User

16y ago

What else can I help you with?

Continue Learning about Accounting

What is the total revenue at break even point if Ace corporation's variable costs are equal to 43 percent of sales revenue and their fixed costs per month are 600000?

Revenue at BREAK EVEN point is $0.00


How do you calculate direct contribution?

Direct contribution is calculated by subtracting variable costs from sales revenue. The formula is: Direct Contribution = Sales Revenue - Variable Costs. This metric helps assess the profitability of individual products or services by indicating how much revenue is available to cover fixed costs and generate profit. It's often used in break-even analysis and decision-making.


What is the break-even point when variable costs are 20 percent of total revenue and fixed costs are 40 million per year?

Break even point = Fixed Cost / contribution margin ratio Variable cost = 20% So Contribution margin = 80% Breakeven point = 40000000 / .8 = 50000000


What data is used to calculate the break even point?

Following data is required to calculate break even point: 1 - Sales revenue or sales price per unit 2 - variable cost per unit 3 - fixed cost


What are the formulae how to find break even sales?

To find break-even sales, you can use the formula: [ \text{Break-even Sales} = \frac{\text{Fixed Costs}}{1 - \left(\frac{\text{Variable Costs}}{\text{Sales Price}}\right)} ] This formula calculates the sales revenue needed to cover both fixed and variable costs. Alternatively, you can also determine the break-even point in units by using: [ \text{Break-even Units} = \frac{\text{Fixed Costs}}{\text{Sales Price} - \text{Variable Costs}} ] Multiply the break-even units by the sales price to find the break-even sales.

Related Questions

What is the total revenue at break even point if Ace corporation's variable costs are equal to 43 percent of sales revenue and their fixed costs per month are 600000?

Revenue at BREAK EVEN point is $0.00


What is the sales revenue if variable cost is 40000 and fixed cost is 30000 and break sale revenue is 40000?

Sales revenue = breakeven sales + Fixed Cost Sales revenue = 40000 + 30000 sales revenue = 70000 Prove Sales revenue = 70000 Less: V.C = 40000 Contribution Margin = 30000 Less:Fixed Cost = 30000 Profit (loss) = Nill


How do you calculate direct contribution?

Direct contribution is calculated by subtracting variable costs from sales revenue. The formula is: Direct Contribution = Sales Revenue - Variable Costs. This metric helps assess the profitability of individual products or services by indicating how much revenue is available to cover fixed costs and generate profit. It's often used in break-even analysis and decision-making.


How do you determine break even point when the unit price isn't given?

if sales revenue is provided instead of unit price then breakeven point can be determine by deducting variable costs from sales revenue and so on dividing fixed cost with contribution margin.


What is the break-even point when variable costs are 20 percent of total revenue and fixed costs are 40 million per year?

Break even point = Fixed Cost / contribution margin ratio Variable cost = 20% So Contribution margin = 80% Breakeven point = 40000000 / .8 = 50000000


What data is used to calculate the break even point?

Following data is required to calculate break even point: 1 - Sales revenue or sales price per unit 2 - variable cost per unit 3 - fixed cost


What are the formulae how to find break even sales?

To find break-even sales, you can use the formula: [ \text{Break-even Sales} = \frac{\text{Fixed Costs}}{1 - \left(\frac{\text{Variable Costs}}{\text{Sales Price}}\right)} ] This formula calculates the sales revenue needed to cover both fixed and variable costs. Alternatively, you can also determine the break-even point in units by using: [ \text{Break-even Units} = \frac{\text{Fixed Costs}}{\text{Sales Price} - \text{Variable Costs}} ] Multiply the break-even units by the sales price to find the break-even sales.


What is a method of determining at what point total costs equal total revenue?

A method to determine the point at which total costs equal total revenue is to calculate the break-even point. This is done by using the formula: Break-even Point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). At this point, the revenue generated from sales will cover all fixed and variable costs, resulting in neither profit nor loss. Analyzing this helps businesses understand the minimum sales needed to avoid losses.


What is the break even revenue?

Amount of revenue that is needed to cover all of the fixed costs.


What information provided by a variable costing income statement is used in computing the break even point?

In a variable costing income statement, the key information used to compute the break-even point includes the contribution margin per unit and fixed costs. The contribution margin is calculated as sales revenue minus variable costs, and it indicates how much each unit sold contributes to covering fixed costs. The break-even point is reached when total contribution margin equals total fixed costs, allowing for the determination of the number of units that need to be sold to break even.


How do i calculate the Break-even point in units and in dollars?

To calculate the break-even point in units, use the formula: Break-even Point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). This gives you the number of units that must be sold to cover all fixed and variable costs. To find the break-even point in dollars, multiply the break-even point in units by the selling price per unit: Break-even Point (dollars) = Break-even Point (units) × Selling Price per Unit. This indicates the total revenue needed to reach the break-even point.


How do you calculate break even point in rands?

To calculate the break-even point in rands, you need to determine your fixed costs, variable costs per unit, and the selling price per unit. The formula is: Break-Even Point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Once you have the break-even point in units, multiply it by the selling price per unit to convert it into rands. This gives you the total revenue needed to cover all costs.