Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin RatioCalculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.
Complete the following problems using the following ratios: Sales level at which operating income is zero o If sales above breakeven, then profit o If sales below breakeven, then loss o Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin RatioCalculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
| Complete the following problems using the following ratios: | |||||||||
| Sales level at which operating income is zero | |||||||||
| o If sales above breakeven, then profit | |||||||||
| o If sales below breakeven, then loss | |||||||||
| o Fixed expenses = total contribution margin | |||||||||
| Total sales = total expenses | |||||||||
| Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit | |||||||||
| Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin RatioCalculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. |
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