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Fixed cost = 300000

Contribution margin ratio = (sales - variable cost) / sales

Contribution margin ratio = (10 - 7 ) / 10

Contribution margin ratio = .3

breakeven point = 300000 / .3 = 1000000

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If a firm has a price of 4.00 variable cost per unit of 2.50 and a breakeven point of 20000 units fixed costs are equal to?

Breakeven is when Sales minus Variable Cost minus Fixed Cost = 0 Here we have: (20,000 x 4.00) - (20,000 x 2.50) - FC = 0 80,000 - 50,000 - FC = 0 30,000 - FC = 0 So Fixed Cost = 30,000


Which is more important accounting break-even point or financial break-even point?

The financial breakeven point is a more relevant measure than the accounting breakeven point because the accounting breakeven point does not consider the initial investment in the project. With any investment, one has the option to venture into it, or to take a less risky route and invest (in a bond or a stock that would give them a more guaranteed return). Thus an accounting breakeven, considers all cost, except the opportunity cost of the capital invested in project, and this is something that the financial breakeven considers. Financial breakeven point is the point where NPV is greater than or equal to zero: the point where there is economic value added® (a term trademarked by Stem-Stewart). This is because in calculating the financial breakeven, the formula includes the opportunity cost of capital: the initial investment divided by the timeannuity factor at the discount rate (where the discount rate is the opportunity cost of capital).


What is happening to average variable costs when they equal marginal costs?

When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost


Can you explain the shut-down rule in perfect competition?

Shut-down point is when Price equals Minimum Average Variable Cost. At this point the firm is indifferent between producing or shutting down. This is because at the point Total Revenue is equal to Total Variable Cost, so by producing or shutting down, the firm is making a Loss equal to Total Fixed Costs no matter what it chooses to do


100 dollars is equal to what in pesos?

Well, If 10 pesos equal one American dollar, 10X100 equals 1,000. So $100 equals 1,000 pesos.

Related Questions

What is breakeven output?

Breakeven output is the level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss. It indicates the minimum amount of goods or services a business must sell to cover its fixed and variable expenses. Understanding breakeven output helps businesses set sales targets and evaluate the financial viability of their operations. It is calculated using the formula: Breakeven Output = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).


What is 48 divided by a variable equals twelve?

The answer is 4 because you multiply both 48 and 12 by the variable (and considering the variable is x) it would equal: 48=12x then you divide both ides by 12 it would equal 4=x the variable equals 4


What does 1400000000000 divided by 300000 equal?

4666666.6667


What is breakeven in financial management?

Breakeven in financial management refers to the point at which total revenues equal total costs, resulting in neither profit nor loss. It is a critical metric for businesses to determine the minimum sales volume needed to cover fixed and variable expenses. Understanding the breakeven point helps in setting sales targets and pricing strategies, as well as assessing the viability of projects or products. It is typically calculated using the formula: Breakeven Point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).


How many kilometers are there in 300000 meters?

There are 1000 metres in one kilometre. Therefore, 300000 kilometres is equal to 300000 x 1000 = 300000000 metres.


Cost of goods sold is equal to?

breakeven point


What does 44-z equals -397 equal?

441


What is the answer of this 2x plus y equals 8?

The variable 'x' would equal (8-y)/2. The variable 'y' would equal 8-2x.


What do you call when total revenues equal total costs?

Breakeven.


What is the break even in units if a firm sells 20000 units at 40 each variable costs per unit are 10 and total fixed costs equal 120000?

1. Breakeven point = fixed cost/ contribution margin ratio contribution margin ratio: (sales - variable cost)/sales Sales = 20000 * 40 = 800000 Less: Variable cost = 20000 * 10 = 200000 Contribution margin = 600000 Contribution margin ratio = 600000/800000 = .75 Breakeven point in dollars = 120000/.75 = $160000 breakeven point in units = 160000 / 40 = 4000


If a firm has a price of 4.00 variable cost per unit of 2.50 and a breakeven point of 20000 units fixed costs are equal to?

Breakeven is when Sales minus Variable Cost minus Fixed Cost = 0 Here we have: (20,000 x 4.00) - (20,000 x 2.50) - FC = 0 80,000 - 50,000 - FC = 0 30,000 - FC = 0 So Fixed Cost = 30,000


Produce 60000 variable costs equal 50 percent fixed costs total 120000 what price stero sold to achieve EBIT of 95000?

Breakeven point = Fixed cost + EBIT / contribution margin ratio Contribution margin ratio = sales price - variable cost Contribution margin ratio = 1 - 0.5 = 0.5 or 50% Breakeven point = 215000 / .5 = 430000