Calculate the ratio of variable costs to sales for a firm with $3,900,000 accoun

Question

Calculate the ratio of variable costs to sales for a firm with $3,900,000 accounting break-even revenues, $1.6 million fixed costs, and $740,000 depreciation?

What is the accounting break-even level of revenues for a firm with $9 million in sales, variable costs of $5.4 million, fixed costs of $1.4 million, and depreciation of $1 million? (Do not round intermediate calculations.)

A firm with $780,000 fixed costs and $380,000 depreciation is expected to produce $405,000 in profits. What is its DOL? (Do not round intermediate calculations.)

A firm with 50% of sales going to variable costs, $1.6 million fixed costs, and $510,000 depreciation would show what accounting profit with sales of $4 million? Ignore taxes.

Explanation / Answer

Variable Cost to Sales Ratio At Break Even Contribution = Fixed Cost Variable Cost = 3900000-1600000 -740000= 1560000 Ratio = 1560000/3900000 = 40% Break Even = Fixed Cost/ PV Ratio = 1400000/36/90 = $ 3500000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.