A construction company has a fixed overhead of $60,000 and a variable overhead of 2.5% of revenue.

Question:

A construction company has a fixed overhead of $60,000 and a variable overhead of 2.5% of revenue. Historically, construction costs have been 88% of revenue. What is the minimum amount of sales that are required to break even?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Construction accounting and financial management

ISBN: 978-0135017111

2nd Edition

Authors: Steven j. Peterson

See More Books

Question Posted: Mar 27, 2013 06:44 AM

See More Questions

A construction company has a fixed overhead of $100,000 and a variable overhead of 2% of revenue. Historically, construction costs have been 90% of revenue. What is the minimum amount of sales that...
What is the minimum angular speed at which Michelsons eight-sided mirror would have had to rotate to reflect light into an observers eye by succeeding mirror faces?
What is the minimum proton energy needed in an accelerator to produce antiprotons p by the reaction p + p p + p + (p + p) the mass of a proton and antiproton is mp.
If the arch rib $A B C D E$ in Figure $\mathrm{P} 6.30$ is to be funicular for the dead loads shown at the top joints, establish the elevation of the lower chord joints at $B$ and $D$. 40...
An astronaut exercising on a treadmill maintains a pulse rate of 150 per minute. If he exercises for 1.00 h as measured by a clock on his spaceship, with a stride length of 1.00 m/s, while the ship...
A company is in the process of negotiating with a bank for an additional loan. Why will the bank be interested in the companys debt service coverage ratio?
Two of the pumps in Fig. P12.24 are operated in series to supply water through the piping system. Determine the flow rate through the piping system for $10^{\circ} \mathrm{C}$ water and screwed...
Astor Corporations balance sheet at January 1, 20X7, reflected the following balances: Phel Corporation, which had just entered into an active acquisition program, acquired 100 percent of Astors...
Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department received 69,060 liters from the Purifying Department. During the period, the Bottling Department...
1. Using the framework in Figure 9-4, how would you categorize each of the three customer segments? 2. How should Johnson Snacks respond to the letter from Discount 2 You? Murray Griffin, manager of...
Determine the break-even volume of work for a company with a fixed overhead of $63,000, a contribution margin ratio of 11.0%, and a required level of profit of $60,000.
Determine the break-even contribution margin ratio for a company with a fixed overhead of $115,000 and revenues of $1,500,000.
Sundance Co. sold merchandise to Butterfield Co. on account, $16,800, terms 2/15, n/30. The cost of the merchandise sold is $12,600. Sundance Co. issued a credit memo for $3,800 for merchandise...
Let's look at some relatively recent news here: What is Theranos? Who is Elizabeth Holmes? How do Theranos, Elizabeth Holmes and the SEC all come together? Did Elizabeth Holmes agree to settle the...
James provides lawn services to ABC Corporation. James spends about 25 hours per week on the premises of ABC. He does not have any other clients. When ABC does not heed landscaping and lawn care...
In Illinois, when two of four children turn 18 years old how much child support is lost? Currently receiving $1900.00 per month for four children.
7 week 5, Excerciese 1/1: Splines in a geometry shader O A geometry shader is an optional shader stage between the vertex and the fragment shader. The geometry shader takes a geometric primitive,...
A and B own farms in southern Ontario next to one another in an area where the land registry system applies. They have access to their farms by means of a road that runs along the northerly edge of...
Construct a truth table to verify the De Morgan laws for the algebra of statements analogous to (6.1) for the algebra of sets.
What are current assets and current liabilities? How are they different from non-current assets and non-current liabilities?
To qualify for head of household rates, which of the following must be present? a. You must be unmarried on the last day of your tax year. b. You must maintain a household and contribute over 50...
Suppose you owned a portfolio consisting of $250,000 worth of long-term U.S. government bonds. a. Would your portfolio be risk less? b. Now suppose you hold a portfolio consisting of $250,000 worth...
If investors aversion to risk increased, would the risk premium on a high-beta stock increase more or less than that on a low-beta stock? Explain.
If a companys beta were to double, would its expected return double?
Can you elucidate the intricacies of cellular respiration, delineating the metabolic pathways involved and their respective roles in energy production within eukaryotic organisms ?
How do the mechanisms of ventilation and gas exchange operate synergistically in facilitating the diffusion of oxygen and carbon dioxide across the respiratory membrane, ensuring optimal...
How do environmental factors, such as altitude, temperature, and atmospheric composition, influence respiratory physiology, necessitating adaptive responses at both the cellular and systemic levels...

A construction company has a fixed overhead of $60,000 and a variable overhead of 2.5% of revenue.

Question:

Step by Step Answer:

Using Eq 107 to find the contribution margin ratio we get the following CM Ratio 1 C...View the full answer

Construction accounting and financial management

Students also viewed these Finance questions