accountant1

Question:

A company's total sales and cost information is provided below:
$000
sales 100
variable prod cost 35
fixed prod cost 39
var non-prod cost 5
fixed prod cost 6

what woulb be the breakeven sales revenue?

A) 75,000
b) 85,000
c) 60,000
d) 65,000

the correct ans would be 75,000

is it right or wrong?

Plz reply asap.

dohard

Accordingly

B.E (rev) =T.F.C/cs ratio

TFC = 39+6 =45 *1000
= $45000
c/s ratio= 65/100 = 0.65

Now if we put these values in above formula we get

B.E (rev)= 45000/0.65 = [ $ 69230. ]

So no match found.
check out question again.

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habiblatif

B.E (rev) =T.F.C/cs ratio

TFC = 39+6 =45 *1000
= $45000
c/s ratio= 60/100 = 0.60

Now if we put these values in above formula we get

B.E (rev)= 45000/0.60 = [ $ 75000 ]
you r right man