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.

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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