Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 32. you can also calculate the amount of sales rev

32. You can also calculate the amount of sales revenue to break even...

50.1K

Verified Solution

Question

Accounting

image

32. You can also calculate the amount of sales revenue to break even by dividing total fixed costs by total contribution margin ratio. So, if FC are 1,000,000 and the combined (total) CM ratio is 33%, then BE sale is 33. A decrease in sales price, with no changes in costs, will result in a CM/unit, which will cause the volume needed to break even (or achieve a target profit) to than it was before the price change. So units need to be sold to reach the same financial goals. The opposite is also true 34. Managers can quickly forecast the expected increase or decline in operating income from changing sales price or volume by multiplying the newby the expected 35. An increase in variable cost, with no change in sales price, will result in a CM/unit, which will cause the volume needed to break even (or achieve a target profit) to than it was before the change in cost. So units need to be sold to reach the same financial goals. The opposite is also true

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

explain why separation of roles of chairman and CEO is considered best practice in most jurisdictions

Basic Math
1.2K views

Share a link to a news article or study that you think exhibits a sampling error...

Chemistry
1.2K views

10. A mixture of 0.08729 mol of H2O, 0.1041 mol of CH4, 0.08069 mol of CO,...

Programming
1.2K views

[C#] Randomly generate two numbers that user chooses and then ask the user what the answer...

Electrical Engineering
1.2K views

Define a 3 phase short circuit and a line to ground faults in a PV system....

Physics
1.2K views

If a curve with a radius of 81 m is properly a curve of a radius 74 m...

Calculus
1.2K views

Next que 0 A company determines that its marginal revenue per day is given by...

Algebra
1.2K views

The function f is given by the graph below 10 Answer 5 10 101 5...

Algebra
1.2K views

Select the correct answer The height of a pelican as it swoops down to catch...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Sarah (single) purchased a...

Accounting
1.2K views

Amortization and depletion entriesData related to the acquisition of timber rights and intangible assets during...

Accounting
1.2K views

A town levied property taxes of $790,000 on January 1, 2017 for calendar year 2017....