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
Revenue at BREAK EVEN point is $0.00
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
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.
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.
Break even point = Fixed Cost / contribution margin ratio Variable cost = 20% So Contribution margin = 80% Breakeven point = 40000000 / .8 = 50000000
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
Amount of revenue that is needed to cover all of the fixed costs.
the break even is calculated as such: SP-VC=_ FC/_=(BREAK EVEN POINT) so in this case-->> £180,000-£60,000=£10,000 £30,000/£10,000 = 3 So the break eve the break even is calculated as such: SP-VC=_ FC/_=(BREAK EVEN POINT) so in this case-->> £180,000-£60,000=£10,000 £30,000/£10,000 = 3 So the break even point in here would be 3... :D
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.
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.
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.
There question is incomplete:There is no variable cost given for manufacturing method B. I'll assume it is b.It is unclear as to quantity for which the cost of manufacturing by both methods is the same. I'll assume it is the break-even quantity.The break even point is when the revenue from sales = cost of manufactureSo the question is asking for what quantity is the cost of manufacture using method A equal to the cost of manufacture using method B.cost of manufacture = fixed cost + variable cost × quantityMethod A: manufacturing cost = 40,000 + 23 × quantityMethod B: manufacturing cost = 52,000 + b × quantity→ 40,000 + 23 × quantity = 52,000 + b × quantity→ 23 × quantity - b × quantity = 52,000 - 40,000→ quantity(23 - b) = 12,000→ quantity = 12,000/(23 - b)I'll let you fill in the value of b; if b has no variable cost, b = 0.