Market Sales had $1,233,000 in sales last month. The variable cost ratio was 60% and operating profits were $82,200. What is Market's break-even sales volume?


2. If sales increase by 20%, what level of fixed costs will yield a 30% increase in profits?

 

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You have been provided with the following information: Sales Less variable expenses Contribution margin Less fixed expenses Operating profit Total $100,000 56,000 44,000 22,000 $ 22,000 You have been provided with the following information: Sales Less variable expenses Contribution margin Less fixed expenses Operating profit Total $100,000 56,000 44,000 22,000 $ 22,000

Answer rating: 100% (QA)

1 To calculate the breakeven sales volume we need to find the sales level at which the operating pro... View the full answer