Question: 4 4 . A firm with constant variable costs has a survival revenue breakeven of $ 3 7 5 , 0 0 0 . This

44. A firm with constant variable costs has a survival revenue breakeven of $375,000. This year it had $250,000 in sales, $100,000 of which was a fixed cost. What are the firms cash fixed costs?
Note: I understand that i need to use the formula SR = CFC/(1-VCRR) to solve for CFC, but how do get the value for VCRR so that i can then solve for CFC

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!